The currency is becoming such an important tool for multinationals that it is the second currency used by a range of leading companies including Volkswagen, Daimler, Ford and General Motors. It is used by over the half of the companies surveyed to make payments outside of China, for instance. 

Obstacles

A report produced by A&O shows that 62 per cent of companies in the Asia-Pacific, Europe and the US which have exposure to the currency predict a doubling in transaction volumes by 2020. But a lack of understanding about the currency within the businesses is seen (by 77 per cent of them) as their major obstacles in using the currency.

Listening regulators

Jane Jiang, a regulatory partner for China, said: 'Rapid growth in the RMB’s use is being matched by rapid change in the currency’s regulatory framework. To meet this challenge, many multinationals exposed to the RMB will have to think differently about their treasury function. Many of the old restrictions and constraints on which companies based their renminbi-related decisions and strategies are fading away. China’s RMB regime is likely to be a source of new possibilities for those companies who not only keep abreast of the changes and adjust their own policies in response but also dare to ask for changes by proactively communicating with more listening regulators.' Source: A&O