Istanbul – The International Air Transport Association (IATA) will be adding the Renminbi (CNY) as one of the settlement currencies available to airlines and other suppliers through IATA Clearing House (ICH). ICH is already offered in seven currencies, including US Dollars, Euros, British Pounds, Swiss Francs, Singapore Dollars, Australian Dollars, and Japanese Yen.
Settlements in Renminbi will be available starting December 2025, following the completion of a trial period. China Southern Airlines and Xiamen Airlines will be the first to pilot settlements in Renminbi from November 2025. 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.
"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 of Air China. The airline, which currently chairs the China Airline Committee, has been a strong champion for the addition of the Renminbi.
As part of IATA's industry-wide settlement system, the ICH provides fast, secure, and cost-effective settlement services to 581 airlines and other associated companies in the air transport value chain, processing USD63.8 billion in 2024. This includes 33 Chinese and foreign airlines operating in China.
"Our customers expect financial services from IATA that are continuously more efficient and cost-effective. 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.
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