Although financing is still done mainly in USD, Company C recognized the strategic importance of using RMB and in 2012 it opened RMB accounts in Singapore and London. It has done some transactions, however time zone differences have made it somewhat difficult to manage from a cash management perspective.
Now that there is a Canadian hub, Company C wants to manage risk at its head office in Canada.
Canada’s mining industries exported over $3.1 billion of goods to China in 2014, the second largest amount of exports to China of any sector.
Company C made a strategic decision to concentrate and manage its risk in Canada.
Company C opened a RMB account in Canada to receive RMB payments.
Company C set up internal processes to enable trading in RMB products.
RMB is now used for inter- company trade and to pay external suppliers, reducing costs.
It is easier to net exposures and establish better procurement terms.
The decision allows for diversification of assets.
Open RMB bank account in Canada.
Change internal systems and invoicing.
Access RMB liquidity and investment options.
Did you know?
According to latest GFCI, Vancouver is the 5th most powerful financial centre in North America.
All five of Canada’s largest banks have significant operations in BC.
Vancouver is among the top-10 wealth management centres in the world.
Vancouver ranked third most livable city in the world by the EIU.