Multinationals are adjusting their posture towards the renminbi from “nice to have” to “must have,” as the currency becomes essential to their cross-border business strategy.
A recent poll of senior executives suggests the Chinese currency, also referred to as the yuan, is becoming more important to multinationals as an instrument of corporate finance. As their renminbi exposure grows and the government eases currency restrictions, MNCs have more room to pursue an assortment of currency plays.
While financial institutions seize exchange rate investment opportunities as a matter of course, corporates have mostly confined their renminbi association to transactions and transfers.
To be sure, global...