Firms in Singapore, Malaysia, Germany & UAE Top Ranks of CNY Endorsers

Findings from the annual renminbi (RMB) survey carried out by HSBC highlight that the Chinese yuan has become a widely discussed topic in company boardrooms in the past year. More than a fifth of the firms participating in the study have debated whether the Chinese currency is a business enabler.

Outside of the country, about a quarter of the management teams of companies in Singapore, Malaysia, Germany and the UAE have discussed the currency’s role for the expansion of other business. The figures in the English-speaking countries, including Australia, Canada, the UK and the US are materially different with just under a fifth reporting interest.

The poll encompasses more than 1,600 executives from 14 countries and territories. The survey added 3 new countries this year - Brazil, Malaysia and South Korea.

HSBC’s Chief Executive of Commercial Banking, Simon Cooper, said in an announcement made by the bank, “Corporate use of the renminbi reached a watershed last year. The currency began to depreciate against the dollar, reversing a multi-year trend and marking a new phase in the liberalisation process.”

“Whereas many companies outside China used to see RMB adoption as a somewhat niche opportunity to gain first mover advantage, they’re now adjusting to it becoming a mainstream tool. If you’re doing business with China, the world’s biggest trading nation, you have to think about doing business in China’s currency,” he outlined.

Ever since China began to phase out barriers limiting cross-border transactions in 2009, the renminbi’s global use has been rapidly growing. In the latter part of last year, the Chinese currency became the fifth most-used currency for global Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term, according to data from SWIFT.

After the value of RMB payments more than doubled in a year, the currency climbed about 8% against the U.S. dollar between January 2011 and January 2014. The picture looks very different in 2015, as the Chinese yuan declined close to 3% since the start of the year reflecting accelerating growth in the U.S.

That didn’t stop the renminbi from appreciating against pretty much all other major currencies.