Why use the Renminbi?

  • A readiness to do business in RMB gives exporters a vital edge
  • A majority of foreign firms doing business with China gain financial and relationship advantages from using RMB
  • Easier to do business with a Chinese small and medium sized client when payment is made in RMB:
    • RMB letters of credit and cash financing are easier to obtain and more flexible
    • Can bypass China’s foreign exchange agents, who impose fees and enforce quota
  • The Renminbi (RMB) provides many advantages for corporate clients, SMEs, asset managers and retail customers:
    • Ability to deal in a local market which is efficient, convenient, transparent and familiar
    • Opportunity for corporate savings through potential discounts by Chinese businesses and the elimination of FX premiums
    • Hedging advantages – by hedging in renminbi, companies can reduce risk in invoicing and lower the transaction costs of trade and investment
    • RMB provides new investment options for investors searching for yield such as renminbi-denominated debt and investment products
    • A RQFII quota of 50 billion RMB allows investors to buy Mainland investment products using offshore renminbi
    • Ability to deal in a North American time zone for RMB
“A recent survey by HSBC showed that 55% of Chinese businesses said they would offer discounts of up to 5% to their trading partners for RMB denominated transactions.”

HSBC, RMB Survey

“Canadian Companies are embracing trade with Mainland China. 74% of Canadian companies surveyed expect to increase trade with the country in the next 12 months – well above the global average of 59%.”

HSBC, Corporate Survey



NEWS & EVENTS

Nov 1, 2017
Fintech helping Canada power its way from being an exporter of raw materials and manufactured goods to a service export powerhouse

Oct 17, 2017
Ontario Improving the Delivery of Financial Services Technology

Oct 12, 2017
Sibos 2017: Toronto Financial Services Alliance Welcomes Sibos to Toronto

MORE NEWS

TFSA UPDATE

Sign up for our free email newsletter. Every quarter we‘ll send you important news and information about the financial services industry in Toronto. See past issues.