StanChart: Global Corporates Accelerating Yuan Adoption
Corporates worldwide are increasingly using the Chinese yuan for various purposes, according to a Standard Chartered report, including trade settlement and supply chain financing.
Global corporates are accelerating the adoption of the Chinese renminbi (RMB) with 23 percent of revenues and 25 percent of costs carrying exposure to the currency, according to a report by Standard Chartered. However, just 14 percent of debt is denominated in the RMB, highlighting a gap between operating exposure and financing currency.
The report finds that RMB adoption is increasingly driven by corporate operating needs rather than currency positioning with key drivers including trade settlement, supply chain financing, balance sheet alignment and managing foreign exchange and interest rate exposure.
Different Regions, Different Patterns
Adoption patterns vary across regions with corporates in Greater China and North Asia expanding RMB usage beyond settlement to include funding and liquidity management. In Southeast Asia, adoption is largely supply chain-driven, while usage in the Middle East and parts of Africa is concentrated in energy and infrastructure trade corridors. In Europe and the Americas, capital markets issuances and selective funding diversification are emerging as notable entry points.
«Many corporates already have meaningful RMB exposure through trade, procurement and supply chains. As market infrastructure deepens and liquidity expands, adoption is increasingly being driven by operational needs — including trade settlement and balance sheet alignment,» said Karen Ng, head of China opening and RMB internationalization at Standard Chartered.
The report, entitled «Renminbi in Motion for Corporates», was based on a survey of nearly 300 global corporates across 19 sectors.
