find the latest legal job
Senior Associate - Litigation & Dispute Resolution
Category: Litigation and Dispute Resolution | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Come work for a firm ranked in Lawyers Weekly Top 25 Attraction Firms
View details
Associate - Workplace Relations & Safety
Category: Industrial Relations and Employment Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Employer of choice · Strong team culture
View details
Freelance Lawyers
Category: Banking and Finance Law | Location: All Perth WA
· Freelance opportunities through Vario from Pinsent Masons
View details
Freelance Lawyers
Category: Other | Location: All Adelaide SA
· • Qualified lawyer with a strong academic background
View details
Freelance Lawyers
Category: Other | Location: All Melbourne VIC
· • Qualified lawyer with a strong academic background
View details
RMB currency of choice for multinational deals

RMB currency of choice for multinational deals

renminbi

A report produced by Allen & Overy has found that more than half of multinationals use the renminbi for transactions outside China.

This week’s release of the Generation ¥ – RMB: the new global currency by A&O reveals that the rise in the popularity of the RMB is having a considerable impact on companies’ China strategies, with more than 50 per cent of multinationals using the Chinese currency for payments outside greater China.

The vast majority (90 per cent) of the senior executives interviewed said their company’s exposure to the RMB is either important or very important, and almost two-thirds (62 per cent) in the Asia-Pacific, Europe and the US with exposure to the RMB expect transaction volumes to more than double in the next five years.

These findings follow a dramatic increase in the use of the RMB. Global RMB payments grew in value by 102 per cent last year and, in January, the RMB became to the fifth most popular global payment currency by value (behind the dollar, euro, pound and yen), after having been in 20th place just four years ago.

Jane Jiang, China regulatory partner at Allen & Overy, commented that the rapid growth in the RMB’s use is being matched by rapid change in the currency’s regulatory framework.

“Many of the old restrictions and constraints on which companies based their renminbi-related decisions and strategies are fading away,” she said.

“China’s RMB regime is likely to be a source of new possibilities for those companies who not only keep abreast of the changes and adjust their own policies in response but also dare to ask for changes by proactively communicating with more listening regulators.”

The regulatory changes have presented challenges, however, with 74 per cent of multinationals identifying delays in the rollout of the China International Payments System and 65 per cent highlighting operational constraints in the guise of a lack of overall RMB liquidity as major concerns.

Even so, the internationalisation and convertibility of the RMB has already had a considerable impact on companies’ China strategies, with 85 per cent saying it has led to more investment for mainland expansion plans due to lower funding costs, as well as a restructuring of global (71 per cent) and regional (68 per cent) supplier/vendor networks.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

RMB currency of choice for multinational deals
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
microphone
Oct 20 2017
Podcast: One of law’s most infamous alumni – in conversation with Julian Morrow
In this episode of The Lawyers Weekly Show, Melissa Coade is joined by The Chaser’s Julian Morrow....
protest
Oct 20 2017
High Court overturns ‘excessive’ anti-protest legislation
Bob Brown’s recent victory in the High Court over the Tasmanian government was a win for fundament...
Blocked
Oct 20 2017
Changes to Australian citizenship laws blocked
Attempts to beef up the requirements to obtain Australian citizenship were thwarted this week, after...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...