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Canadian companies are the least likely to trade in renminbi: HSBC

Published by Brad Fougere on July 10, 2014

Canadian businesses involved in international trade with China are missing out on savings that could be tapped by increasing their use of renminbi (RMB) according to a survey completed for HSBC by Nielsen.

Of the approximately 100 Canadian businesses surveyed, only five per cent said they had used the Chinese currency in trade settlement. Over half of the Chinese companies surveyed said they would offer discounts up to five per cent for transactions completed in the country's domestic currency.

The discreptency represents an opportunity for businesses who plan to diversify their international exports. China represents Canada's number two trading partner with trade growth projected by 74 per cent of respondents to that country.

“China is Canada’s second largest trading partner behind the US. Trade between Canada and China is growing at a remarkable pace – increasing 57 per cent between 2007 and 2012," said HSBC Canada's Executive Vice President and Head of Commercial Banking Linda Seymour in the release.

"The survey results highlight the need for Canadian businesses to learn more about how using RMB can help them reduce costs and secure a competitive advantage when trading with China."

View the survey report here.

Found in: HSBC China

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