HSBC Makes First UK Cross-border RMB Transaction
HSBC has made its first UK cross-border renminbi (RMB) trade settlement transaction for hand and garden tool business Neill Tools, a UK subsidiary of Spear & Jackson.
This transaction follows the extension in June 2010 of the Chinese Government’s pilot programme launched in July 2009 to permit the use of RMB in cross-border trade between designated companies in mainland China and member countries of the Association of Southeast Asian Nations (ASEAN).
Stuart Nivison, head of trade and supply chain, HSBC Europe, said: “This is an important milestone in the journey towards the RMB becoming one of the top three currencies used in global trade. In as little as five years it is anticipated that some 30% of China’s international trade will be conducted in RMB.”
Spear & Jackson chief financial officer (CFO), Patrick Dyson, said: “A global business like ours relies on its financial providers for help in navigating an increasingly complex international business environment and for access to the most up-to-date and innovative financial solutions. We were delighted with HSBC’s proposal that we consider RMB trade settlement for this particular transaction.”