As companies look to bring about some form of normalization in a Covid-altered world, the corporate treasury function across Asia has continued to occupy center stage by moving digitization to the front seat in the drive to ensure that businesses are able to thrive. And nowhere in the region is digital transformation of the treasury more apparent than in China, where the rise of e-commerce and faster payments infrastructure, in particular, are uncovering new ways that could help reimagine the future of treasury and reset the course of the renminbi.

China’s rise to the position of being the world’s biggest trading economy has brought about a fivefold expansion in the use of its currency over the past decade. As well, the fact that China remains as a top investment destination for global multinationals and that Chinese companies are also increasingly becoming more prominent in the global arena have fuelled demand for the renminbi and boosted its status as an international currency.

China has also been launching more measures to support growth of RMB as an international trade currency, including simplifying both capital and current account flows in RMB.  As its import and export industries continue to grow, the global use of RMB is also expanding, particularly in cross-border trade transactions. Indeed, offshore RMB pools are growing on the back of corporates increasing their RMB holdings and, thus, creating more need for RMB-denominated payment and trade solutions. Moreover, the People’s Bank of China strong backing for an e-CNY, a digital version of the renminbi, offer an exciting number of opportunities for corporates.

The Asset Events+, in association with DBS, is pleased to be hosting an in-depth discussion to explore how the rise of the renminbi and digitization during Covid-19 are reshaping the corporate treasury function.