Take a look at how South Asian importers can open an RMB account, hold CNH balances, and pay Chinese suppliers without the FX markups of a direct bank wire
Key takeaways
- An RMB account holds Chinese renminbi (RMB), letting South Asia importers receive, hold and send funds in CNH (offshore RMB) rather than converting from PKR or BDT on every supplier payment.
- Holding RMB brings predictability. You can convert when rates are favourable, hold the balance, and pay suppliers without worrying about real-time FX movement.
- RMB bank accounts are difficult to open from Pakistan or Bangladesh, often requiring extensive documentation, specific account availability and in-branch visits.
- RMB-supporting foreign currency accounts or multi-currency accounts are the practical alternative, with fully online setup and faster onboarding.
For a Pakistan or Bangladesh business sourcing from China, almost every supplier payment comes down to a question of currency. Paying from a PKR or BDT account means two FX conversions along the way, each with a bank markup eating into the margin on the imported goods.
An RMB account changes this. By holding RMB directly, you decide when to convert, how much to convert, and when to pay. This guide covers what an RMB account is, why holding RMB matters for South Asian importers, the two main ways to open one, and how to pay Chinese suppliers once the account is set up.
What is an RMB account?
An RMB account holds funds in Chinese renminbi (RMB), the official currency of mainland China. Pakistan and Bangladesh importers typically use an RMB account to receive, hold, and send RMB funds for business payments to China.
CNY vs CNH
China operates two parallel versions of the renminbi:
- CNY (onshore RMB): Used within mainland China. Access from outside China is restricted, and most international businesses cannot hold CNY directly without a registered Chinese entity.
- CNH (offshore RMB): Traded outside mainland China through Hong Kong and other international financial centres. CNH is the version most foreign businesses, including those in Pakistan and Bangladesh, can access through international payment providers.
For practical purposes, when a South Asia importer opens an “RMB account”, it is almost always a CNH account. Suppliers in China accept CNH payments routinely, as the funds convert to onshore CNY for the supplier through established banking channels.
Why hold RMB? Benefits for South Asian businesses importing from China
Running every supplier payment through PKR or BDT means paying FX markups twice: once converting from PKR or BDT to USD or RMB, and sometimes again on the Chinese side. Holding RMB directly avoids this.
The main benefits:
Convert when rates are favourable: RMB exchange rates move daily. Holding a CNH balance lets you convert PKR or BDT into RMB when the rate is in your favour, rather than at the exact moment a supplier invoice arrives.
Predictable supplier payments: Once your RMB balance is funded, you know exactly how much your next supplier payment will cost in RMB. There is no risk of a sudden FX movement increasing the cost between invoice and payment.
Avoid double conversion: Paying a supplier in RMB directly from an RMB balance means no mid-payment conversion. The alternative, paying in USD or PKR, often leaves the supplier covering the conversion and passing the cost back to you through pricing.
Receive RMB from Chinese business partners: If you also sell to Chinese buyers (through Chinese marketplaces, Chinese customers, or Chinese distributors), an RMB account can also receive payments without forcing an immediate conversion to local currency.
Reduce FX risk on known upcoming payments: For a large order with a known deposit and final payment schedule, holding RMB (or locking in a forward rate) protects your margin on the deal.
Types of RMB accounts for South Asian businesses
South Asian businesses can access RMB through two main account types.
RMB bank accounts
Some Pakistan and Bangladesh banks offer RMB-denominated foreign currency accounts for business customers. These are regulated bank accounts, protected under their respective banking frameworks, and typically positioned at businesses with substantial trade exposure to China.
Foreign currency accounts with CNH support
A foreign currency account is a bank or financial institution account denominated in a currency other than the local one. Some Pakistan and Bangladesh banks offer foreign currency accounts in multiple currencies, including CNH alongside USD, EUR or GBP. These are typically opened as separate accounts per currency, each with its own account number and features.
Multi-currency accounts with CNH support
A multi-currency account holds balances across multiple currencies within a single account. Some multi-currency accounts support CNH, letting businesses hold, send and receive CNH alongside other currencies like USD and GBP from one account rather than separate accounts per currency.
Multi-currency accounts are offered by both banks and specialised international payment providers. Features, setup processes, fees and currency support vary significantly between providers.
Multi-currency accounts that support CNH typically offer the ability to hold CNH balances alongside other supported currencies in a single account and currency conversion between supported currencies.
| Factor | RMB bank account | Foreign currency account with CNH | Multi-currency account with CNH support |
| Account structure | Dedicated single-currency RMB account | Separate account per currency, including CNH | Multiple currencies within a single account |
| Provider type | Primarily banks | Primarily banks | Banks and specialised international payment providers |
| Setup process | Typically in-branch with extensive documentation | Typically in-branch with business documentation | Varies by provider; some offer fully online setup, others require branch visits |
| Setup time | Varies by bank | Varies by bank | Varies by provider |
| Minimum deposit | Varies by bank | Varies by bank | Varies by provider |
| Monthly fees | Varies by bank and account tier | Varies by bank and account tier | Varies by provider and account tier |
| Documentation requirements | Full business and trade documentation, often including import licences | Business and KYC documentation | Business and KYC documentation |
| Currency flexibility | Single currency per account | Separate accounts per currency | Multiple currencies within a single account |
| FX conversion | At the bank’s published rate | At the bank’s published rate | At the provider’s published rate |
Pay Chinese suppliers with WorldFirst
The World Account from WorldFirst is a multi-currency account for South Asia businesses, with CNH as one of the 15+ supported currencies. Here is how it supports supplier payments to China:
Hold CNH alongside your other currencies: Convert PKR, BDT or held USD into CNH at competitive rates, and hold the balance until you need to pay
Send CNH payments to Chinese suppliers: Pay suppliers directly in CNH, the currency most Chinese counterparties prefer for international payments
Pay 1688.com suppliers through World Pay: For businesses that source from 1688, World Pay is the authorised international payment provider for the marketplace, letting you pay 1688 suppliers directly from your CNH balance.
Lock in future rates with forward contracts: Set a forward contract to secure a CNH exchange rate for an upcoming supplier payment up to 24 months in advance
Receive CNH payments from Chinese buyers: If you also sell to Chinese customers or distributors, local CNH receiving details let you collect payments without forced conversion to PKR or BDT.
FAQs
1. Do I need an RMB account to pay Chinese suppliers?
No, but holding RMB directly makes supplier payments more predictable and avoids FX markups on every outbound payment. For businesses with regular China import flows, an RMB-supporting account typically saves meaningful amounts across the year.
2. Can I receive payments in RMB with a multi-currency account?
Yes. Multi-currency accounts that support CNH typically provide local receiving details, letting you receive CNH from Chinese buyers through local payment rails rather than SWIFT.
This article is intended for informational purposes only and does not constitute legal advice or professional advice. This article should not be regarded as constituting an offer or a solicitation to buy or sell any regulated or financial products or services. WorldFirst makes no representations or warranties regarding the accuracy, completeness, or applicability of the content, and readers are encouraged to consult with legal professionals or other professionals for advice tailored to their specific situation. WorldFirst does not guarantee the accuracy and completeness of this article and expressly disclaims any and all liability to any person in respect of the consequences of anything done or omitted to be done wholly or partly in reliance on this article.
