20 Mar 2012

BNZ preparing for surge in renminbi trade

8:20 am on 20 March 2012

The BNZ is expecting a big increase in the numbers of Chinese firms invoicing New Zealand suppliers in renminbi following a loosening of currency controls.

The People's Bank of China recently said it would allow all mainland firms to apply to it to settle cross-border transactions in the Chinese currency.

Settlement in renminbi had previously been restricted to 60.000 Chinese firms, with the majority invoicing customers in American dollars.

The head of working capital services at BNZ says the bank has settled a small number of renminbi transactions for New Zealand firms.

Brett Walters says indications from China that it may rein in future rises in the renminbi should not hamper growth in cross-border settlements by its firms.