Should You Be Using the Renminbi To Buy From Your Chinese Suppliers?

Why should more multinational corporations consider invoicing and selling using China’s currency the renminbi (RMB)? Trade Financing Matters published an article this week on the subject. Do Chinese suppliers really provide discounts to those that offer RMB invoicing given Chinese companies no longer have to bear the hedging responsibility, or apply for USD foreign currency to exchange their local currency and can also borrow cheaper in RMB?

According to a study conducted by AdvantageBC, Canadian retailers that sell goods produced in China are currently forced to add between 5-8% to their prices to cover currency transaction costs. The survey went on to say that only 5% of Canadian companies were aware they could do business with Chinese clients using the renminbi.

Next month, Vancouver will open as an offshore renminbi trading hub, too.

You can check out the full article on Trade Financing Matters here.

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