Member question: “Has anyone opened a CNH (offshore renminbi) account? And if so, what do you use it for? Do you: a) pay onshore China vendors, b) offshore vendors?”
Peer answer: “Yes, we have a CNH account in Singapore. We bill to our local distribution entities in local currency and we use the account for intercompany receivables before converting to USD. We make FX settlement payments from the account.”
For more insights on trends in Asia from NeuGroup Members, read founder Joseph Neu’s key takeaways from the 2020 H2 Asia CFOs’ Peer Group meeting sponsored by Standard Chartered.