Settle deals in renminbi, speaker says
Pilbara businesses trying to secure Chinese investment should be open to settling deals in China’s renminbi currency, an Australian banker says.
Commonwealth Bank of Australia head of RMB and China solutions Sangeeta Venkatesan said Australian-Chinese trade should get a major boost in the wake of the countries’ recent free trade agreement.
Talking to the Telegraph ahead of her speaking role at this week’s Pilbara Regional Council EASTxWEST investment forum in Shenzhen, she said Australian businesses seeking to capitalise on the deal should consider using RMB.
She said China last year settled 27 per cent of its global trade in RMB.
“A lot of smaller Chinese companies do not have the ability to settle in the US dollar — they tend to use RMB only,” she said.
A Pilbara tourism company that sought Chinese tourists out in China and allowed them to pay for their flights and booking fees in RMB before travelling was an example of who could benefit from using the Asian currency, Ms Venkatesan said.