Baosteel Pushes Forward Yuan-Denominated Overseas Deal Drive With Third Contract of the Year
The listed arm of the world’s largest steelmaker has made its third yuan-denominated overseas transaction of the year, roughly doubling the value of such deals it made in 2019.
China Baoshan Iron & Steel Co. Ltd., also known as Baosteel, made a yuan-denominated iron ore purchase worth over 100 million yuan from Anglo-Australian miner Rio Tinto Group using blockchain technology, the Chinese company said on social media Monday (link in Chinese).
In January, the steel giant made a 330 million yuan transaction with Brazilian miner Vale SA, and completed a 100 million yuan-denominated trade with the world’s top listed miner BHP Group Ltd. last month. Last year the company said it would seek to sign more yuan-denominated contracts with overseas companies, sealing deals worth a total of 240 million yuan in countries including South Africa and Ukraine.
In this, Baosteel, which is part of state-owned China Baowu Steel Group Co. Ltd., is helping to carry out the Chinese government’s long-term plan to turn the yuan into an internationally used and accepted currency. Last year, China’s cross-border yuan-based trade settlement totaled 6.04 trillion yuan.
Baosteel also said that this was the first time that blockchain has been used in yuan-based international trade.
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