Trade: More and more companies are using Chinese currency

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China
Photo: Ralf Leineweber / Unsplash

Almost half of the larger German companies conduct their trading business in Chinese currency renminbi.

The renminbi is becoming increasingly important to Commerzbank’s corporate customers: for two thirds of companies with annual sales of more than 250 million euros, the Chinese currency is of great relevance: 46 percent now invoice in renminbi in their Chinese business, and a further 21 percent this group plan the changeover in the next 12 months. In a study conducted by Commerzbank, only 9 percent of SMEs with annual sales of between 2.5 and 12.5 million have changed their invoicing.

In addition to positive confirmations, the survey also contains: The addition of cash services, which continue to be important, risk management solutions are becoming increasingly important. Renminbi, 73 percent of customers cite “hedging foreign exchange risk” as their main driver for the first time (previous year: 60 percent).

Other key reasons cited for this are “advantages in price negotiations” (57 percent; previous year: 62 percent), “advantages in opening up markets on the Chinese mainland” (46 percent; previous year: 35 percent) and “preferences of Chinese trading partners “(38 percent, previous year: 37 percent).

According to the survey, the main changes to the changeover are already established procedures (57 percent, previous year 59 percent) and the “trading partner’s preference for the euro or US dollar” (49 percent, previous year 41 percent).

Renminbi is the official name of the Chinese currency.