French and German Lead Use of Yuan

French and German companies are leading among countries outside of greater China in the usage of the yuan, according to a report by HSBC Holdings Plc.

The London-based lender surveyed 1,304 businesses that have ties with mainland China in 11 major economies. Some 26 percent of French corporates and 23 percent of German companies now settle trades in the Chinese currency, the highest proportions apart from mainland China, Hong Kong and Taiwan.

“China will have a higher propensity in using the renminbi in trades and its trading partners will also have an increasing propensity and willingness to use it,” Noel Quinn, the Hong Kong-based head of commercial banking for Asia Pacific at HSBC, said in a July 7 interview. “The dominant reason for using it, based on the survey, is it facilitates winning more business in China.”

Bloomberg

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