1 in 10 S'pore companies now use RMB to settle trade transactions

1 in 10 S'pore companies now use RMB to settle trade transactions
    POSTED: 17 Jul 2013 9:32 PM
 
Eleven per cent of Singapore companies are now using the Renminbi (RMB) to settle their cross border transactions with China.

SINGAPORE: Eleven per cent of Singapore companies are now using the Renminbi (RMB) to settle their cross border transactions with China.

This is according to a study by banking group HSBC which comes amid China's push to internationalise the currency.

The survey also found that 53 per cent of Chinese businesses would offer discounts of up to five per cent for transactions settled in RMB.

Joseph Arena, head of global trade and receivables finance from HSBC, remarked that these potential cost savings were appealing to Singapore firms as they grapple with escalating fixed and labour costs.

While the RMB has yet to catch on with more Singapore firms, 31 per cent of companies surveyed did foresee themselves picking up the currency in the next five years to mitigate foreign exchange risk and benefit from better prices.

The appointment of the Industrial and Commercial Bank of China (ICBC) as RMB clearing bank in Singapore last year will help Singapore develop as an offshore RMB market.

HSBC's survey covers over 850 companies that conduct international business in China.

- CNA/fa

- wong chee tat :)