RMB Settlement In The "Dollar Nest" Surged By 327%

Less than P, data from the Interbank Financial Communications Association of the International Monetary Fund Clearing Corp show that as more American companies switch to using renminbi to pay for imports from China, compared with the same period last year, the amount of Renminbi payments between the United States and other countries in the world increased by 327% in April.

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Debra Rocky, executive director of HSBC in New York, said the reason for the surge in the use of the renminbi was structural and long-term.

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< p > Rocky said, first of all, American Importers agree to settle in Renminbi instead of US dollar, which can reduce the cost of < a href= "http://www.91se91.com/news/index_cj.asp" > Import < /a > Chinese products.

Second, the recent popularity of a range of renminbi financial market tools has made it easier for US companies to avoid currency risk and obtain investment returns from the renminbi held by them.

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< p > reported that the absolute scale of < a href= "http://www.91se91.com/news/index_cj.asp" > RMB > /a > between the US and China is far less impressive than its growth rate.

In April this year, the RMB settlement between the US and China / Hongkong accounted for only 2.4% of the total settlement, compared with 0.7% in 2013.

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P, however, this situation will change in an unquestionable way.

Rocky said: "by 2015, we believe that 30% of China's Global trade will be settled in Renminbi, and now it is only 13%-15%."

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So far, large Chinese companies have been pushing the shift from the use of the US dollar to the use of RMB settlement, P.

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< p > < a href= > http://www.91se91.com/news/index_f.aspwww.91se91.com/news/index_cj.asp > Lodge < /a > said: "I think in the next two years, we will see that the proportion of China's small and medium-sized enterprises using RMB (trading with the United States) has been greatly improved."

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< p > Rocky said that this change is partly driven by the recent devaluation of the renminbi.

This year, the yuan has fallen by 3.2% against the US dollar.

Previously, the appreciation of the renminbi was considered a one-way bet. Chinese exporters have been used to lowering the value of the dollar to pfer their foreign exchange risk to us importers.

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< p > therefore, if the official exchange rate is 6 yuan to 1 US dollars, the importers of the United States usually have to agree to sign a contract with the exchange rate of 5.8 yuan to 1 dollars, which will increase the price of imported goods from China.

However, after the renminbi is traded, American importers will no longer have to pay a premium to Chinese exporters.

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< p > Rocky also said that for Chinese exporters, the use of RMB to eliminate exchange rate risk is welcome.

At the same time, American importers can hedge their currency risk in the increasingly flexible offshore RMB market.

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