Anyone seeking evidence that international businesses are actively looking to diversify from the US dollar can find it in Qatar, according to Mary Huen Wai-yi, chairwoman of the Hong Kong Association of Banks.
Businesses in the affluent Middle Eastern nation are keen to take advantage of the yuan, also known as the renminbi (RMB), by using a “toolbox” available in Hong Kong, she said after returning from a government-led trip two weeks ago.
Members of the 10,000-member Qatar Chamber of Commerce and Industry raised questions like: “if I have a joint venture, buy some capabilities from China, and do an investment together, how can the RMB pool help?” Huen said.
“We told them we have a big pool and different capabilities like settlement, payment, hedging [and] swaps”, which can give them a level of comfort as they consider investments, added Huen, who is also the CEO of Hong Kong, Greater China and North Asia at Standard Chartered, one of the city’s three note-issuing banks.
An increase in yuan-denominated trades and investments should thrill Hong Kong’s financial sector because it would translate to more deals and opportunities, especially amid strengthening ties between China and oil-rich Qatar as it steers its economy into new energy and technology, she added.
The trend also showcases that the US’ trade war has spilled over to the financial market, prompting more countries and businesses to consider alternatives to the dominant US dollar in international trades, payments and investments. This urgency to “de-dollarise” dovetails with China’s effort to internationalise its currency, a strategy that dates back to the 2008 financial crisis and aims to mitigate risks and assert financial independence amid escalating Sino-American decoupling.
