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.


# 1

among foreign banks in China's cross-border
RMB transaction volume

Source: People's Bank of China (February 2017)

As 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.



Why the RMB matters

China’s government expects half of all Chinese foreign trade to be settled in RMB by 2020

For companies outside of mainland China, using RMB could bring multiple benefits such as:

  • Reduces foreign exchange and interest rate risk
  • Improves liquidity and cash management
  • Facilitates trade with suppliers and customers in China who prefer to settle in RMB
  • Improves price transparency because mainland Chinese counterparts do not need to include exchange or currency hedging costs in their pricing access to finance and investment opportunities in RMB
China is committed to implementing foreign-exchange and financial reforms; opening up China's economy and financial markets; and promoting the renminbi as an international currency.

Helen Wong, Chief Executive, Greater China, HSBC

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

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

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