UK small firms quick to take up renminbi
BRITAIN’S small businesses are more willing than European and US rivals to settle trade with Chinese firms in the renminbi, a study from HSBC shows today.
Among firms which do business on the Chinese mainland, renminbi was used to settle 17 per cent of trade.
That compared with 12 per cent among US firms and just four per cent for German businesses.
The fifth-most used currency in world trade is rapidly gather pace – a further 16 per cent of British firms are considering using the renminbi, as are 25 per cent of German firms and 11 per cent of those in France.
And 29 per cent of UK small- and medium-sized enterprises (SMEs) believe the Chinese currency will become fully internationally tradable, joining the other major currencies within the next five years.
“Whether it’s reducing their exposure to currency fluctuations, or simply getting a cheaper price from a supplier, the benefits of trading in the currency of the world’s biggest trading nation are too great to ignore,” said HSBC’s Mark Emmerson.