HSBC welcomes bilateral currency swap
(28 March 2012 – China) A bilateral local currency swap agreement between the Reserve Bank of Australia (RBA) and the People’s Bank of China (PBOC) was warmly welcomed by HSBC this month.
HSBC Australia chief executive Paulo Maia said the agreement will help to support continuing growth in Renminbi liquidity – an important development in the ongoing internationalisation of Chinese currency.
"HSBC believes that by 2015 some US$2 trillion (A$1.9 trillion) of Chinese trade will be settled in Renminbi, making it one of the top three trading currencies in the world.
"Given the role of China as Australia’s number one trading partner, accounting for around one-fifth of our trade, the Renminbi is already playing an increasingly important role in Australia’s international trade.
"For businesses that trade with China, the ability to trade in Renminbi not only reduces their costs and risk with a natural currency hedge but may provide improved trading terms with Chinese suppliers and purchasers.
"This will also support Chinese corporations wishing to invest abroad with the Renminbi and for foreign companies wishing to invest in China.
"It’s important that Australian businesses prepare for the increased use of the Renminbi," he said.
In 2011, HSBC Bank Australia launched a range of Renminbi products and services across retail and wholesale banking in Australia to help the increasing number of Australian customers seeking to participate in China’s growth story.
"HSBC believes that by 2015 some US$2 trillion (A$1.9 trillion) of Chinese trade will be settled in Renminbi, making it one of the top three trading currencies in the world.
"Given the role of China as Australia’s number one trading partner, accounting for around one-fifth of our trade, the Renminbi is already playing an increasingly important role in Australia’s international trade.
"For businesses that trade with China, the ability to trade in Renminbi not only reduces their costs and risk with a natural currency hedge but may provide improved trading terms with Chinese suppliers and purchasers.
"This will also support Chinese corporations wishing to invest abroad with the Renminbi and for foreign companies wishing to invest in China.
"It’s important that Australian businesses prepare for the increased use of the Renminbi," he said.
In 2011, HSBC Bank Australia launched a range of Renminbi products and services across retail and wholesale banking in Australia to help the increasing number of Australian customers seeking to participate in China’s growth story.
Subscribe