Hennes & Mauritz, the Swedish fast-fashion retailer, isconsidering paying for its clothes in Chinese yuan, the WallStreet Journal reports. H&M buys the majority of itsclothes in Asia, but pays about 80% of its purchasing costs indollars. The company wants to protect itself against astrengthening dollar. More than half of its revenue comes in eurosor currencies pegged to the euro, so when the dollar rises againstthe euro, H&M's costs rise.
|However, the company has yet to make a decision. China stillmaintains tight control over the yuan and bank fees are costly.Cross-border yuan transactions account for only around 10% ofChina's trade, but the country has recently been attempting to makethe yuan a more global currency.
|For the full Wall Street Journal story.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
