Gulf Arab states are increasingly using the Chinese yuan for trading as China accounts for a growing share of the region's exports, and given volatility in major currencies, a senior executive at Standard Chartered said on Tuesday.
"We are seeing an increasing interest from the GCC (Gulf Cooperation Council) in renminbi," said Farooq Siddiqi, managing director for transaction banking at Standard Chartered. "That's mainly due to increasing trade between both sides and the need to hedge against dollar exposure," he told reporters at a roundtable event in Dubai.
Gulf states are increasingly selling hydrocarbons to Asian countries like Korea, China and India, compensating for a decline in such trade with Iran following the introduction of new sanctions.
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