Press release
The Internationalisation of the RMB: A Treasury Perspective
With the RMB ascending in popularity, AFP has released a new guide underwritten by Standard Chartered to help corporate treasurers and finance professionals leverage the new RMB offerings.
Chinese authorities recently took two important steps toward further liberalising trade in RMB, making it possible to further integrate the RMB into global corporate treasuries. First, the rules for cross-border trade settlement that are denominated in RMB have been simplified. Next, and perhaps most importantly, the government opened up the spigot on lending onshore RMB to offshore affiliates and even third parties.
The above developments together with the new China (Shanghai) Free Trade Experiment Zone (CSFTEZ), which was officially opened on September 27, are cause for excitement.
The guide discusses these developments that will have an immediate and long-term ramification of a strategic nature, which will require a new conversation between treasury and senior management about how to treat their companies’ growing presence in China.