French and German companies are leading among countries outside of greater China in the usage of the yuan, according to a report by HSBC Holdings Plc.
The London-based lender surveyed 1,304 businesses that have ties with mainland China in 11 major economies. Some 26 percent of French corporates and 23 percent of German companies now settle trades in the Chinese currency, the highest proportions apart from mainland China, Hong Kong and Taiwan.
“China will have a higher propensity in using the renminbi in trades and its trading partners will also have an increasing propensity and willingness to use it,” Noel Quinn, the Hong Kong-based head of commercial banking for Asia Pacific at HSBC, said in a July 7 interview. “The dominant reason for using it, based on the survey, is it facilitates winning more business in China.”
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.