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.

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