RMB’s exchange rate more flexible. Your risk just doubled. What to do?

The China Daily runs the headline “Yuan’s trading reform gains momentum, risk prevention needed.” Expanding the yuan’s floating band is a significant step of the yuan’s trading reform, but will also increase trading risks for export-oriented firms and banks in the short run, said Lian Ping, chief economist with Bank of Communications. The exchange rate…

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Pay suppliers in RMB and save big

The China Daily ran an interesting article about how more and more UK retailers are paying their Chinese suppliers in RMB  (Chinese Yuan or CNY) rather than USD or Euros.     With the yuan having appreciated at least 7 percent against the dollar since June 2010, Chinese suppliers commonly embed a “buffer” into dollar-denominated contracts…

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my appreciation of the RMB depreciation!

For the first time since I can remember, the RMB (AKA Chinese Yuan or CNY) didn’t appreciate today. For the past 5 years the trend is pretty obvious. Just look at the chart below. Beijing has kept the maximum daily allowable appreciation amount to a minimum, so there were no big jumps, but day by…

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RMB: The Best Currency for China Trade

In addition to a sea of change in international tax regulation, Hong Kong is making efforts to become the preferred location of Trade Settlement in RMB (see China Focus Jan 2010). Since the scheme has now been expanded but still lacks clarity, we have decided to provide you with a Q&A on the most important issues for foreign companies doing business via Hong Kong.

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