As China drives intra-Asian trade and economic expansion, trade settlement in its currency is gaining momentum globally.
Stronger domestic consumption and intra-regional trade have emerged as two major drivers of economic growth in Asia. China’s large role in regional growth has led to increasing acceptance of the renminbi RMB in trade settlement, and it could one day become a regional currency, says HSBC.
“The outlook for Asian trade is positive. HSBC forecasts that trade in the region will grow at an average of 5.4% annually from now until 2016. Additionally, between now and 2026, trade in Asia will grow as much as 129%, outpacing global trade growth of 98%,”
said Huynh Buu Quang, the bank’s head of global trade and receivables finance for Asia-Pacific. Intra-regional trade currently accounts for 50% of all trade in Asia Pacific, which is also seeing its share rise rapidly with other emerging markets, Brazil in particular, he said. In 1990, trade in Asia was only about 8% of the global total.
By 2010 the figure had reached 18%, and HSBC forecasts it will reach 39% by 2030, spurred by rising household incomes and domestic demand.“Trade in Asia, including Asean, is expected grow fast despite the uncertainty we see in Europe and the United States,” Mr Quang said during a recent briefing in Bangkok.
“China will continue to play its central role and yuan settlement will be gaining more momentum throughout the region.”
The global use of the yuan as a trade settlement currency is clearly on the rise, and offshore payments are increasingly taking place outside Hong Kong. China’s total international trade last year was worth US$3.5 trillion and about 10% was settled in renminbi.
Thai baht becoming the region’s worst-hit currency in COVID pandemic
According to data from its tourism ministry as well as the World Bank, Thailand had only a little over 34,000 tourist arrivals as of May 2021, compared with over 39 million in 2019, before the pandemic. Fewer tourists also means lower demand for the Thai baht.
3 Reasons to Be Optimistic About the Baht Right Now
Probably one of the most important factors for the rise of the Baht is the continued weakness of the US dollar, which most experts agree is going to continue declining throughout the rest of the year.
The Thai Baht, our beleaguered currency, has had something of a difficult few years. Successful debt and inflation crises have eroded the value of the Baht numerous times, not least the events of 2015-16, which saw the Baht plunge to some of the lowest levels against the Dollar in history.(more…)
China’s economy stumbles on power crunch
BEIJING (Reuters) – China’s economy hit its slowest pace of growth in a year in the third quarter, hurt by power shortages, supply chain bottlenecks...
Quarantine-Free Thailand Reopens for Vaccinated Tourists From 1 November 2021
The Tourism Authority of Thailand (TAT) would like to confirm that Thailand is all set to welcome fully vaccinated foreign...
The ASEAN-India Trade in Goods Agreement
The ASEAN-India Trade in Goods Agreement (the “Agreement”) is a trade deal between the ten member states of ASEAN and...
Bangkok lifts more COVID-19 restrictions
In response to the Royal Thai Government’s announcement to relax more COVID-19 controls in the dark-red zone provinces, which include...
Thailand lifts curfew in ‘Blue Zone’ destinations from 31 October 2021
Bangkok, 22 October, 2021 – The Tourism Authority of Thailand (TAT) would like to provide an update that the night-time...