The renminbi is becoming more popular in international transactions as companies in Europe benefit from using the Chinese currency, according to a survey by Deutsche Bank.
Around 20 percent of the surveyed companies in the United Kingdom, Germany and the Netherlands carry out invoicing in the Chinese currency, and the remaining 80 percent said they are considering doing so.
Using the renminbi helps companies reduce costs and obtain access to more business partners in China.
When companies use the Chinese currency, they can lower prices by an average of 4.8 percent when negotiating with Chinese partners, according to the survey.
Switching to the currency means more benefits for small and medium-sized companies, according to Nils Ole Matthiessen, Deutsche Bank's head of global finance and foreign exchange.
He added that SMEs will have a wider network of suppliers and partners in China after switching to the renminbi, because they can do business with Chinese companies who previously had limited access to Western currencies.
Brembo, the Italian car brake manufacturer that supplies brakes to car companies such as Ferrari and Lamborghini, recently opened a renminbi account for transactions with its Chinese operations.
"As we expand our business in China, managing cash flows and associated FX exposure is critical to drive growth," said Giancario Cicuttini, global treasurer of Brembo.
The survey said that banks in London are also expanding renminbi transactions in other emerging markets as business grows between China and Africa. In South Africa, the Chinese currency accounted for around 10 percent of total payments in July, compared with 6 percent in January.
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