A telegraphic transfer (TT) in US dollars is the way most East African importers have always paid Chinese suppliers — but familiar is not the same as cheap. When you add up the conversions and fees, paying directly in RMB usually leaves more money in your pocket and more in the supplier's account.
- A USD TT involves two conversions and a chain of correspondent-bank fees.
- Paying in RMB involves one conversion and settles through CIPS without that chain.
- On a typical order, the difference can be a few percent of the invoice value.
- The supplier also benefits from RMB, which makes negotiation easier.
What a telegraphic transfer really costs
A telegraphic transfer is just a bank-to-bank wire, usually in US dollars. It works, and it is well understood — but its costs are spread across several steps that are easy to overlook:
- You convert your local currency into US dollars at your bank's rate.
- The wire passes through correspondent banks, each able to deduct a fee.
- The supplier's bank converts the dollars into RMB at its own rate.
- Tracking a delayed or short TT can mean extra investigation fees.
Each step is small on its own, but together they can quietly add a few percent to the cost of an order — and most of it happens after the money has left you.
The hidden nature of these costs is the real problem. Your bank shows you a clean figure leaving your account, so it feels like you paid exactly that. But the supplier may receive 1-2% less than the invoice because of fees deducted in transit and an unfavourable conversion at their end — and then they ask you to top up the shortfall. You end up paying the gap twice: once invisibly, once on the follow-up.
Side by side
| Element | USD telegraphic transfer | Pay in RMB |
|---|---|---|
| Conversions | Two | One |
| Intermediary fees | Per correspondent hop | Minimal (CIPS) |
| Amount supplier gets | Often below invoice | Exact invoice |
| Speed | Variable | 1-2 business days |
| Familiarity | High | Growing fast |
The TT's one real advantage is familiarity. On every cost measure that affects your margin, the RMB route tends to win.
Making the switch
Moving from TT to RMB does not change how you do business — it changes the rails underneath. You still agree a price and pay against an invoice; you simply pay in the currency your supplier banks in.
- 1Ask your supplier for their price and bank details in RMB.
- 2Confirm the account name matches the invoice (the key fraud check).
- 3Pay the RMB amount through a service that handles the cross-border leg.
- 4Keep the confirmation against the invoice for your records.
The switch is mostly a mindset change. The telegraphic transfer was the only realistic option for decades, so it became the habit — but the rails have moved on. Treating RMB as your default, and reserving USD for the rare supplier who genuinely needs it, is how experienced importers quietly protect a few percent of margin on every single order. Over a year of buying, that adds up to real money kept in your business rather than lost to intermediary banks.
Frequently asked questions
What is a telegraphic transfer?
A telegraphic transfer (TT) is a bank-to-bank wire, usually in US dollars. It is the traditional way to pay overseas suppliers.
Is paying in RMB really cheaper than a TT?
Usually, yes. A TT involves two conversions and correspondent-bank fees, while an RMB payment involves one conversion and settles through CIPS without that chain.
Does switching to RMB change my contract with the supplier?
No. You still pay against the same invoice and price — you just settle in RMB, the currency the factory banks in.
SilkBridge helps importers in Kenya, Uganda and Tanzania pay Chinese suppliers in RMB — documented, reviewed in Nairobi, and tracked to payout.
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