The International Air Transport Association (IATA) announced the addition of the Chinese Renminbi (CNY/Yuan) as a settlement currency available to airlines and other suppliers through the IATA Clearing House (ICH).
The International Air Transport Association (IATA) announced the addition of the Chinese Renminbi (CNY/Yuan) as a settlement currency available to airlines and other suppliers through the IATA Clearing House (ICH).
In a statement posted on November 5, IATA stated settlements with the CNY will be available starting December 2025 following the completion of a trial period during the previous month. Chinese carriers China Southern and Xiamen Air will be the first to pilot settlements using the CNY. With the CHY available, the new option offers significant benefits for airlines operating in China by reducing currency exchange risks, easing the onboarding of local suppliers, and cutting overall costs.
The CHY will be one of eight currencies available to use for settlements among airlines and suppliers on the ICH. Settlements on the ICH can be transacted with the US Dollar (USD), The European Union's Euro (EUR), the United Kingdom Pound (GBP), Singapore Dollar (SGD), Swiss Franc (CHF), Australian Dollar (AUD), and the Japanese Yen (JPY).
“We welcome IATA’s decision to add the Renminbi as a settlement currency. This is a positive development for the air transport industry in China. Avoiding costly and multiple currency conversions will speed up settlement and reduce currency exchange risk,” said Sun Yuquan, Chief Financial Officer, Air China.
“Enabling settlement in Renminbi through the ICH helps meet that need. It’s an important investment in the ICH which will deliver an enhanced service to our members airlines with no additional cost. And it’s encouraging to see that the market is welcoming this addition positively,” said Frederic Leger, Senior Vice President of IATA Products & Services.
The ICH is a “comprehensive and streamlined” aviation industry-wide settlement system used by 581 airlines and other companies within the air transport industry worldwide. In 2024, the ICH processed USD $63.8 billion in transactions. The IATA reports 33 airlines in China and foreign airlines operating within the country currently use the system.
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