Renminbi Internationalisation

China’s renminbi (RMB) is the third most-used currency in trade finance. HSBC could help your business make the most of trading in RMB


Why the RMB matters

As mainland China's trade with the rest of the world has expanded dramatically over the last 15 years, its currency - the renminbi, has also internationalised and become a globally accepted currency enabling more cross-border capital flows.

The Belt and Road vision is to create the physical infrastructure, financial institutions and policy environment that will facilitate regional trade and cooperation, accelerating international use of the renminbi.

 

China’s Belt and Road Initiative (BRI) has given new impetus to the evolution of Asian capital markets.

These developments, as well as changes to regional currency baskets, are likely to accelerate further the internationalisation of the renminbi, according to Candy Ho, Global Head of Renminbi Business Development, Markets at HSBC. “There has been a lot of discussion as to how the renminbi is behaving, which primarily relates to its exchange rate against the US dollar,” she says, noting that the US remains one of China’s largest trading partners. “But China has also been trading a lot with the rest of world, with Europe and Asia, and with the introduction of the BRI by the Chinese president, Xi Jinping, back in 2015, there are more and more cross-border activities between China and the BRI countries.”

HSBC Tops Asiamoney’s New Silk Road Finance Awards

 HSBC was named the Best Overall International Bank for the Belt and Road Initiative (BRI) in the 2019 Asiamoney New Silk Road Finance Awards, demonstrating the Bank’s success in delivering on its strategic commitment to the BRI. This is the second time HSBC has won the title, since the award was launched in 2017.

 

 

Does your business have a strategy for trading in the renminbi?

Speak to your HSBC relationship manager to find out more or email us.

Contact Us