More foreign companies using yuan (3)

Sometimes it is simply easier for foreign companies to find buyers if they can settle in the Chinese currency, Berlin said.

Noel Quinn, HSBC’s regional head of commercial banking Asia-Pacific, said as China develops a regulatory framework to open up and internationalize the currency, the bank has seen increased demand for the yuan in transactions.

"International businesses looking to benefit from China’s growth must explore the benefits of using the yuan when transacting with their Chinese counterparts to take full advantage of discounts that may be available," Quinn said.

The yuan is on track to becoming a major trade currency by 2015, HSBC said.

In recent years, China has been promoting direct transactions between the yuan and other currencies to facilitate global use of the yuan and reduce dependence on the greenback.

Greater flexibility and the recent appreciation of the yuan will also increase willingness to sell dollars and hold more yuan, said Guo Tianyong, a professor of finance at the Central University of Finance and Economics.

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