By Michelle Chen
HONG KONG, Feb 20 While cross-border trade
settlement in yuan is expanding quickly among global
corporates, a mindset change among Chinese companies and wider
use of the yuan in commodities trade could help it break past
existing bottlenecks, bankers say.
China's ambitions to internationalise its currency have
already seen some success with a quick pick-up of redenomination
of trade settled in dollars. However, there is still some
reluctance among local companies to fully embrace the "redback".
A recent survey by Standard Chartered Bank showed that
Chinese corporates, whether located onshore or in Hong Kong,
have lagged Hong Kong corporates and multinationals in terms of
offshore yuan participation.
"Rising awareness among these companies about the benefits
of switching to RMB invoicing will be the big focus point for
2014," said Michael Vrontamitis, regional head of product
management at Standard Chartered Bank in Hong Kong.
"Chinese corporates need to examine the underlying input
cost of their entire supply chain and ask whether settling
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