Global firms with China units shift to renminbi debt financing due to cheaper rates.
Global firms with China units shift to renminbi debt financing due to cheaper rates, stemming from US-China interest rate disparity. Companies save up to 250 basis points in interest costs, avoiding currency risks and locking in benefits by matching assets and liabilities in RMB. This trend highlights the growing acceptance of the Chinese currency in international markets, with cross-currency swaps increasing.
April 09, 2024
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