Firms see no need for Yuan internationalization

China’s quest to promote the yuan as a global currency still faces headwinds, with many firms abroad still resistant to using the Chinese currency, a new report shows.

According to an HSBC survey of over 700 businesses worldwide, the use of the yuan in trade settlements with the world’s second-largest economy remains sparse outside Hong Kong and mainland China.

“I think the main reason why they’re not using it is a lack of education to understand how to use it and what are the benefits. It’s not a fully convertible currency, there’s quite a lot of rules and processes that one has to go through to understand that,” said Simon Constantinides, regional head of global trade and receivables finance Asia-Pacific at HSBC.

The survey showed 52 percent of companies admitting to having a limited understanding of the internationalization of the yuan, while 38 percent said they didn’t perceive a clear benefit.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu