The world's second-largest banking and financial services group HSBC is offering dedicated yuan accounts (RMB accounts) at its branches throughout the UAE.
All UAE-based customers who avail of the facility will be able to trade with China and receive in yuan without converting their currency exposure. This will not only help businesses lower their trading costs but reduce foreign exchange risk.
"Our trade research tells us that the yuan has already overtaken the pound in its use as a settlement currency and traders are telling us that they expect it be one of their top 3 settlement currencies this year. And, as trade with Asia increases, so does global interest in this important currency," said Nicholas Levitt, Head of Commercial Banking for the UAE.
This suits China also as it seeks to reduce reliance on the US dollar in trade and investment. The Asian powerhouse started to allow businesses to use yuan in cross-border trade from July 2009.