Direct payments in the Chinese currency, yuan, would increase Dubai’s exports and would help traders save the difference they pay when they conduct money exchanges.
Hamad Buamim, president and CEO, Dubai Chamber, believes that using the Chinese currency for cross-border payments would save local exporters five per cent of the cost of money exchange.
According to an analysis by Al Bayan newspaper, Dubai’s trade with China is set to expand by five per cent to AED185 billion in the current year.
Last year, the two-way trade exchange between Dubai and China amounted to AED175bn, making the Far Eastern Asian nation Dubai’s top trading partner. The analysis indicates that an amount of AED10bn would be saved if transactions were conducted in yuan.
In the first half of the current year, Dubai’s trade with China stood at AED90bn, the figures reveal.
Buamim added that the International Monetary Fund’s recent announcement to include the Chinese currency in its Special Drawing Rights (SDR) basket is a recognition of China as a global economic power.