A BIG upswing is expected in coming years in the number of Australian businesses transacting with China in yuan, according to a survey by HSBC.
While only 7 per cent of Australian companies have conducted cross-border yuan transactions -- a figure that lags other developed markets -- the HSBC survey of 700 international companies found that yuan adoption would almost treble to 20 per cent in the next five years, with the majority planning to start within three years.
James Hogan, head of commercial banking at HSBC Bank Australia, said China and Australia were inextricably linked, with China Australia's top trading partner, accounting for more than a quarter of two-way trade.
"With this two-way trade expected to grow by 8.5 per cent a year to 2020, it's obvious Australian companies' renminbi use will increase in lockstep," he said.
