{"id":24491,"date":"2012-08-29T00:17:00","date_gmt":"2012-08-28T22:17:00","guid":{"rendered":"http:\/\/beta.next-finance.net\/news\/smes-switching-to-renminbi-for-chinese-business-according-to-db-survey\/"},"modified":"2012-08-29T00:17:00","modified_gmt":"2012-08-28T22:17:00","slug":"smes-switching-to-renminbi-for-chinese-business-according-to-db-survey","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/news\/smes-switching-to-renminbi-for-chinese-business-according-to-db-survey\/","title":{"rendered":"SMEs switching to Renminbi for Chinese business according to DB survey"},"content":{"rendered":"<p>A growing number of companies are switching to Chinese<br \/>\ncurrency Renminbi (RMB) for their Chinese business according<br \/>\nto a representative survey carried out by Deutsche Bank<br \/>\namong companies in the UK, Germany and the Netherlands.<br \/>\nCurrently, 20% of companies carry out their invoicing in<br \/>\nRenminbi, with the remaining 80% stating that switching<br \/>\ntheir invoicing over to Renminbi is already in the pipeline.<br \/>\nBy moving over to Renminbi, companies can lower prices in<br \/>\nnegotiations with Chinese business partners by an average of<br \/>\n4.8%.<\/p>\n<p>&#8220;We are seeing a growing trend towards the use of Renminbi<br \/>\ntransactions, particularly from SMEs,&#8221; says Nils Ole<br \/>\nMatthiessen, Head of Global Finance &#038; Foreign Exchange<br \/>\nStructuring Germany &#038; Austria. In doing so, companies are<br \/>\ntaking advantage of a number of benefits. They are expanding<br \/>\ntheir network of suppliers and buyers by bringing on board<br \/>\nmore Chinese companies who, in the past, only had limited<br \/>\naccess to western currency. They are also improving their<br \/>\nnegotiating position with Chinese customers and suppliers.<br \/>\n&#8220;What&#8217;s more, transaction costs are reduced and buyers<br \/>\ncan secure price reductions of an average of almost 5%,&#8221;<br \/>\nsays Nils Ole Matthiessen.<\/p>\n<p><quote>In spite of increasing volatility in foreign exchange<br \/>\nmarkets, only around half of companies that were surveyed<br \/>\nhedge foreign exchange risks in Renminbi transactions.<\/quote><\/p>\n<p>For companies themselves, the greatest obstacles in<br \/>\ninternational foreign exchange transactions are the slow<br \/>\npayment process (approx. 30%) and difficulties in obtaining<br \/>\napproval for payments from the Chinese authorities (approx.<br \/>\n15%). &#8220;Processes which accelerate or simplify payment<br \/>\nprocesses in Renminbi helps European companies to strengthen<br \/>\ntheir competitive position in China,&#8221; says Nils Ole<br \/>\nMatthiessen.<\/p>\n<p><strong>In June earlier this year, Deutsche Bank became the first<br \/>\nbank to introduce cross-border RMB payment processing in the<br \/>\nform of a pilot project with the Chinese central bank. The<br \/>\nsimplified RMB cross-border payment scheme allows certain<br \/>\nChina-based companies to invoice and settle cross-border<br \/>\ntrades in Renminbi without having to provide documentation<br \/>\nfor pre-trade verification.<\/strong> Currently, banks are required to<br \/>\nphysically check the documentary proof of each underlying<br \/>\ntrade transaction before they can process a RMB payment on<br \/>\nbehalf of their corporate clients.<\/p>\n<p><quote>Trade outside of China using the Chinese currency Renminbi<br \/>\ncurrently amounts to around USD 2 billion per day, meaning<br \/>\nthat trade in the currency pair USD\/RMB has doubled in<br \/>\nvolume over the past 15 months (May 2011: USD 1 billion).<\/quote><\/p>\n<p>Cross-border RMB processing volume rose year-on-year by 42%<br \/>\nto RMB 1.4 billion in the first half of 2012. Deutsche Bank<br \/>\nprocesses between 20 to 30% of global trade in Renminbi<br \/>\n(outside of China) through its systems.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In spite of increasing volatility in foreign exchange<br \/>\nmarkets, only around half of companies that were surveyed<br \/>\nhedge foreign exchange risks in Renminbi transactions&#8230;<\/p>\n","protected":false},"author":20,"featured_media":24489,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1470],"tags":[1763,1954,2073,1671,1651,1437,1706,1710,2239],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/24491"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=24491"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/24491\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/24489"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=24491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=24491"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=24491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}