HSBC provides for a greater role of the yuan for trade settlements between China and the rest of Asia and emerging economies.
For the first half of this year, 10 percent of Chinese trade settlement was done in renminbi, Huynh Quang Buu, HSBC's head of global trade-and receivables Finance Asia-Pacific (international), said yesterday.
Total international trade of China last year was worth US $ 3.5 trillion (108 trillion baht), and approximately 10 percent was settled in its own currency, the renminbi or yuan, he said.
In 2015, yuan scheme expected to count for one third of China's total trade value, estimated at 6 trillion, he said.
As China's trade with emerging economies to 2 trillion in 2015 rising, said yuan scheme must account for more than 50 percent, he. "The renminbi plays an increasingly important role."
He said that Chinese exporters and importers used the yuan to hedge against currency risk rather than for speculation. That is the correct behavior, he said, instead of the common practice of money speculation among companies in other countries.
Chinese traders usually offer 3-per-cent discounts on their goods to support trade colleagues manage currency risk, he said. Counterparties have usually don't have instruments to hedge against forex risk when they participate in yuan settlement due to restrictions imposed by the Chinese authorities.
HSBC estimates that yuan 6.30 per US dollar in this year, as the year 2013 yuan 6.22 per US dollar will be.
Quang said HSBC had yuan trade financing capacity and hedging instruments if the bank has a strong presence in Hong Kong, the only offshore yuan market, he said.
He was optimistic about the growing trade in Asia and the Pacific on the medium and long term. By 2016, trade in the region will grow by 5.4 percent per year, he saidBetween now and 2026, trade in Asia will grow 129 percent, surpassing the growth of world trade of 98 percent, he said. In the same period, Thailand's trade will extend 160 percent.
He said that the Thai exports to China will expand 8 percent. Under Asean, Malaysia will be largest trading partner remained with Thailand.
Post a Comment
Post a Comment