Executive Briefings

More and More, U.S. Firms Use Chinese Money in Cross-border Transactions

Although U.S. companies still trail their European counterparts in using the Chinese currency renminbi for cross-border deals, the frequency has nearly doubled in the past year, according to a recent HSBC study, as reported by the publication Treasury & Risk.

The study polled 1,304 financial decision-makers at companies that do business in mainland China and companies in China that do business abroad. Among U.S. companies, 17 percent said they currently do business in RMB, a sharp increase from 9 percent the past year.

French and German companies were much more likely to use RMB (26 percent and 23 percent, respectively).

“We’re seeing a lot more interest in the RMB,” Martin Brown, executive vice president and head of large corporate banking at HSBC,” told Treasury & Risk. “People are understanding more about how the renminbi trades and the liquidity.”

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The study polled 1,304 financial decision-makers at companies that do business in mainland China and companies in China that do business abroad. Among U.S. companies, 17 percent said they currently do business in RMB, a sharp increase from 9 percent the past year.

French and German companies were much more likely to use RMB (26 percent and 23 percent, respectively).

“We’re seeing a lot more interest in the RMB,” Martin Brown, executive vice president and head of large corporate banking at HSBC,” told Treasury & Risk. “People are understanding more about how the renminbi trades and the liquidity.”

Read Full Article