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The U.S. is Lagging Behind Other Countries When it Comes to Embracing China’s Currency

Posted March 24, 2015

Under Economic Issues, International Trade Issues

(Ana Swanson – Forbes)

China’s currency, the renminbi, is continuing its very gradual march toward internationalization. But although China is America’s second largest trading partner after Canada, the U.S. doesn’t seem to be getting on board with RMB internationalization as fast as other nations, as a new survey by HSBC shows.

Only about 10% of U.S. businesses reported using the RMB to settle cross border trade, compared with a global average of 17%, according to the survey. More U.S. business say they are “investigating the idea” of using the RMB to deal with Chinese partners, though not as many as in other countries. Nearly a fifth of U.S. management teams have discussed using the Chinese currency, roughly similar to companies in Australia, Canada and the UK, but fewer than in Singapore, Malaysia, Germany and the UAE, where about a quarter of teams have done so.

Interesting, small American businesses were more likely to embrace the RMB than large or mid-sized companies. According to HSBC, 12% of U.S. small businesses used the renminbi to settle trade in the last year, compared to 9% of larger companies – though more than a quarter of large companies say they plan to use RMB in the future. Click here to read more.