Because the settlement of the transaction between the buyer and seller occurs when the imported equipment is loaded offshore. The buyer deposits the money in the bank, to the seller to open a letter of credit, after the arrival of the goods offshore, the seller can be certified to the bank to collect money (foreign exchange). Bank charges also occur at this time, so the FOB price as the basis for billing.
Imported equipment bank finance charges refers to the Bank of China handling fees, the formula is: bank finance charges = imported equipment FOB price (FOB price) × bank finance charge rate which, bank finance charge rate is generally taken 0.4% to 0.5%.
Expanded:
The future of the yuan to become one of the major international currencies, both to meet the In order for the RMB to become one of the major international currencies in the future, it must not only meet the requirements of the International Monetary Fund (IMF) for "freely usable currencies", but also ensure the free use and convenience of the RMB through an effective offshore market mechanism.
Historical experience shows that the US dollar has always occupied the largest share in the official foreign exchange reserves of various countries, the key lies in the possession of a developed global offshore market for the US dollar, which maintains a high trading share in major international financial centers and is difficult to be replaced by other international currencies.
So in the long run, the scale of RMB offshore financial business and the proportion of transactions in major international financial centers such as London and Frankfurt will be an important symbol to test whether RMB has become one of the major international currencies.
Reference:People's Daily Online - Development of Renminbi Offshore Market