Set­tle deals in ren­minbi, speaker says

Pilbara News - - Pilbara Business - Ben Leahy

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.

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