Home / Metal News / Copper / Use of RMB as Settlement Currency on the Rise
Use of RMB as Settlement Currency on the Rise
Oct 9,2012 17:02CST
industry news
Source:SMM
Around 12.3 percent of China's trade was settled in renminbi in July and August, up from 10.7 percent in the first half of the year.

Updated: 2012-10-09 ( chinadaily) - Around 12.3 percent of China's trade was settled in renminbi in July and August, up from 10.7 percent in the first half of the year, a research note from Standard Chartered said on Tuesday.


The increase was driven by real corporate need rather than arbitrage opportunities, according to the research note.
"We see many European and Asian clients shifting away from settlement in US dollars," said Stephen Green, an economist at Standard Chartered.


Since the first quarter of 2012, Europe has overtaken Asia Pacific, excluding Hong Kong and China, in terms of the value of settlement in yuan. The United Kingdom leads the rest of Europe.


Meanwhile, settlement in yuan across the Taiwan Straits has also grown since late 2011, and the imminent appointment of a settlement bank in Taipei will be a further catalyst, according to the note.

 

use of RMB settlement up Jul and Aug

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn