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Yuan is moving forward towards global

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1 Yuan is moving forward towards global on Thu Jun 06, 2013 4:35 pm



Yuan is moving forward towards global

June 6, 2013 05:29 PM Last Updated: June 06, 2013 7:03

Previously, the pound sterling was one of the most important reserve currencies in the world during the first half of the nineteenth century. In 1870, Britain was the largest economy in the world, and in 1915 became the largest exporter in the world. After a historic march stretched for about 60 years as the largest economy in the world, the U.S. dollar has emerged to replace the pound sterling, and became the first reserve currency in the world. With the beginning of our entry into the eighties showed signs of the global economy demonstrated its orientation towards the adoption of multiple currencies system, and today we see that the euro, the yen and the French franc emerged Kaamlat the play a key role in the global economy.

There is no doubt that the evolution of the Chinese currency, a profound impact on trade, which provides new opportunities for companies seeking aggressively to seize. It is worth mentioning that the trade exchanges between China and the countries of the Middle East and North Africa have grown steadily over the past few years, thanks to bilateral trade and the growth of the Chinese domestic economy is unprecedented and increasing growth of China's industrial production and assembly lines giant. At the present time, bears many of the Chinese exporters renminbi currency costs and are settled in U.S. dollars, which exposes them to the risk of currency fluctuation and exchange rate.

It also may be subject to loss if the value of the renminbi was evaluated in the time interval between reaching agreement and settlement of payments. To cover and protect themselves from currency risk, put Chinese exporters an additional cost in the pricing equations. And so on, we can say that a lot of the exporters added about 3 percent to settle their transactions in U.S. dollars to cover the currency risk. This was confirmed by the study conducted by "HSBC" about Chinese companies to participate in the work of the World Trade which showed that 41 percent of companies are willing to offer a discount of up to 3 percent, to settle trade transactions currency renminbi, while showed 9 percent of companies ready to provide larger discounts.

Until recently, it was denominated in renminbi undervalued against the U.S. dollar, and therefore it need only to determine its value, which also means that the hedge is relatively expensive. The markets agree that the Chinese currency is approaching from the point of balance in the long term, making them much cheaper hedge. Currently, the use of the renminbi is no longer limited to the savings, but also allows for a new class of young Chinese suppliers who prefer to use their own currency is pleased or المضطرين to face exposure to trading in dollars for the completion and settlement of commercial transactions; because the basic costs are denominated in renminbi. The use of the renminbi has begun at the global level since 2009, Hong Kong has played a leading role in the growing use of the renminbi at the global level. In a related development, Taiwan's government recently began allowing the renminbi deposits. As for the Middle East and North Africa, it is the story of two levels.

has shown companies operating in the GCC countries, which rely on the U.S. dollar in the settlement of transactions commercial attention currency renminbi, realizing the growing use of the renminbi as a currency for the settlement of transactions on International Trade in when I started some These countries settlement of commercial exchanges renminbi, but the majority of these countries have adopted the approach "to wait until clarify things." according to Al Khaleej different story when we come to countries such as Lebanon, where its currency to fluctuate against the U.S. dollar. Whether the settlement of commercial transactions in renminbi or U.S. dollars, they are still vulnerable to exchange rate risk.

reflected the awareness and acceptance of these markets to settle trade payments in renminbi greater compared with that linked their currencies to the dollar. And are already seeing demand in Lebanon, and interest by companies operating in the field of import in these countries to settle trade transactions in renminbi. Finally, it should be on all companies to be aware of the future and what can be achieved RMB them. But will not change from the fact that it can not be for the Chinese yuan to replace the U.S. dollar, but without a doubt it will be one of the main three currencies at the level of commercial exchange

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