The yuan’s rise in global trade is losing momentum and adoption outside of Asia-Pacific remains limited as complex rules deter companies, according to an annual survey by HSBC Holdings Plc.
The report highlights the challenge for China as it seeks to internationalize its currency and open up its capital markets. Premier Li Keqiang is pushing for the yuan to be added to the International Monetary Fund’s basket of four reserve currencies, aiding the nation’s attempts to contest the dollar’s dominance in global trade and finance.
The London-based lender, which interviewed 1,610 businesses worldwide with at least $3 million in annual sales, said 17 percent of those surveyed were using the yuan to settle transactions, down from 22 percent a year earlier. Usage in Germany slid to 7 percent from 23 percent and in France fell to 10 percent from 26 percent. China’s currency has strengthened 26 percent against the euro over the past 12 months.
There is “insufficient publicity about potential benefits for renminbi settlement and complex China regulations continue to be the key reasons for low yuan usage,” Vina Cheung, global head of yuan internationalization at HSBC in Hong Kong, said in an e-mailed response to questions. “Yuan usage remains primarily driven by the Asia Pacific markets, specifically the Greater China region.”