CBA to encourage yuan use among clients
(16 September 2016 – Australia) In the shadows of the Chinese Yuan being included in the International Monetary Fund’s special drawing rights basket in October, the Commonwealth Bank of Australia (CBA) has released a new report, and effort to boost their clients’ use of the currency in trade with China.
The report, titled “The Renminbi, From the People’s Money to the Global Currency”, highlights the advantages of conducting business in the redback, including better pricing deals, faster settlement times and access to a broader range of clients.
“We are trying to demystify the RMB as a currency for our clients, many of whom are very interested in doing business with China,” CBA group executive, institutional banking and markets, Kelly Bayer Rosmarin, told The Australian.
“We think it is important as China internationalises and the currency becomes more globally traded that we have the capacity to support our clients in their cross-border needs.”
Rosmarin said that although engagement with the yuan was “slow” among Australian businesses, it was increasing as with the growth in trade of other products and services such as tourism, education, food and vitamin and healthcare.
“We need to position ourselves with a long-term view of the future,” she said.
East & Partners’ Trade Finance Markets report has found that 47 percent of all Australian importers and exporters nominated China as ‘top 3 key geography’, an 81 percent increase from 2008. Meanwhile, the Australian Business FX program found that the usage of the yuan by Australian businesses has increased from 14.7 percent to 17.1 percent over the last year, and expected to surpass the Euro in 2016.
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