Regional RMB-based trade to further develop in Asia
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Exporters and importers in key Asia-Pacific markets expect to settle more trade volumes in Renminbi (RMB), the Chinese currency, with over half of Hong Kong's total trade to be settled in RMB over the next six months, according to a global survey report released by the HSBC Wednesday.
While the US dollar will remain the dominant trade settlement currency globally, 56 percent of exporters and importers in Hong Kong, 49 percent in Malaysia and 24 percent in the Chinese mainland expect to settle some trade transactions in RMB over the next six months, according to the global HSBC Trade Confidence Index.
The ongoing development of RMB as an international settlement currency was most supported by exporters and importers in Hong Kong, where 19 percent of respondents plan to use RMB as their primary currency in the next six months, said the trade survey report.
Significantly, respondents in all major markets in Asia-Pacific expect to increasingly trade in RMB in the short-term, including 17 percent in Singapore, 10 percent in Indonesia, 7 percent in Vietnam, 3 percent in Australia and 1 percent in India.
The findings of HSBC's bi-annual global trade survey point to Greater China's strengthening position as the primary trading partner for key Asian markets.
"Trade between Greater China and Asia continues to perform robustly," said Chris Lewis, HSBC Head of Trade and Supply Chain for Greater China, adding that the bank is seeing a shift in the region's trade sector with greater exports and import volumes expected to be settled in RMB in the next six months as fast-paced developments in RMB internationalization continue to evolve.
The HSBC Trade Confidence Index covers a total of 17 markets, including key economies in the Asia-Pacific region, the Middle East, Latin America, the United States, Canada and Europe. The current survey comprises six-month views of 5,124 exporters, importers and traders from small and mid-market enterprises on trade volume, buyer and supplier risks, the need for trade finance, access to trade finance and the impact of foreign exchange on their businesses.
