Travelex Global Business Payments has announced that its business customers will now be able to trade in Chinese renminbi.
Travelex will be the first non-bank payments specialist to offer business transfers in the Chinese currency.
Travelex customers will be able to trade directly with Chinese companies.
According to the People’s Bank of China, cross-border trade settled in renminbi is growing rapidly under new scheme regulations, reaching $78bn in 2010 and 2011 volumes having already exceeded last year’s total in April. The Bank of China is working to internationalise the currency and a growing list of commentators see the renminbi becoming a reserve currency within as little as five years.
“The historical significance of a fully convertible renminbi cannot be understated and the movement away from using the US dollar as the default settlement currency has already begun,” said David Sear, global managing director at Travelex Global Business Payments.
“Savvy businesses in Europe, US and Asia Pacific are already changing their approach on trade related cross border payments to benefit from this ability to pay Chinese companies in renminbi. Making renminbi payments available through GEO, provides easy access for a wide range of small businesses, corporates and partners, who previously had to rely on a relatively small number of major banks.”
Travelex intends to roll out the service in late June.