ID :
372791
Mon, 06/29/2015 - 10:01
Auther :

Exporters Urged To Use Renminbi To Trade With China

KUALA LUMPUR, June 29 (Bernama) -- Malaysian exporters are encouraged to use renminbi (RMB) in their trade with China to help mitigate the volatility of foreign exchange especially in the current economic situation. Malaysia External Trade Development Corporation (Matrade) Chief Executive Officer (CEO), Dzulkifli Mahmud, said the RMB is a stable currency in exchange to the Malaysia's ringgit, hence it is to the traders advantage to use RMB as it is more predictable and consistent. "However, the take up to switch trading to renminbi is still slow although there is no obvious hindrance like bureaucracy for this. Hence, more outreach programmes are needed to encourage this," he said. He said this at a press conference after the economic conference and business matching, themed 'One Belt One Road' (OBOR) Malaysia-China organised by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) and officiated by Malaysia's Minister of International Trade and Industry Mustapa Mohamed. Also present were Malaysian Investment Development Authority Deputy CEO Phang Ah Tong and representatives of the Chinese Malaysian Embassy. Malaysia announced in 2012 the acceptance of bank clearing in RMB and since then it has established the mechanism to use RMB as trade settlement currency between Malaysia and China. In April this year, the Bank of China Bhd was appointed as the clearing bank to provide the services approved by China's Central Bank. Dzulkifli said many other countries were already using RMB in their trading such as Australia and a few European countries, and that Malaysia could also explore to use currency for trading with these countries. He said Malaysia's export to China amounted to US$23.4 billion in 2014 and as of the first quarter of this year, it totalled US$7.89 billion, led by electrical and electronics products which constituted 46.7 per cent followed by chemical and palm oil. Malaysia is targeting to expand its bilateral trade and investment with China to US$160 billion by 2017 from US$101 billion at present. Meanwhile, Phang said OBOR involved 60 countries from China up to Venice and there would be a lot of competition and opportunities that lie within it. The business people must be serious in identifying their needs and the needs in China in order to complement each other and avoid competition, he added. -- BERNAMA

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