Amid improving economic relations between the Philippines and China, the demand for the Chinese currency RMB among Philippine companies is beginning to gain traction.
China remains one of the country’s top trading partners, and local companies that deal with China are beginning to realize the cost benefits of settling in RMB. It not only reduces costs but also lowers foreign exchange risks.
From importers to real-estate developers to hotels, more and more businesses are hedging their costs by opening RMB accounts. Daiichi Properties Inc., whose developments have shaped the skylines of Ortigas Center and Bonifacio Global City, has seen a shift in its supply chain to China.
“As with many companies today, our materials and contractors are indirectly and directly from China. With the large amount of supplies, we source from the mainland, settling in RMB has allowed us to be more efficient in our transactions,” said Daiichi Properties president Salvador Uy.