Use renminbi, yen instead of Euro, US dollar, SMEs told

KUALA LUMPUR: The import-oriented small and medium enterprises (SMEs) are encouraged to diversify into other major currencies such as renminbi and yen, instead of Euro and US Dollar, in order to reduce their risk exposure on the strengthening currencies.
"For instance, since July 2009, the Chinese government has started to use renminbi for cross-border trade settlement," the Ministry of International Trade and Industry's Deputy Minister Datuk Ahmad Maslan said at the dialogue session on impact of ringgit's decline on SMEs here today.
"Therefore, it is imperative for Malaysian SMEs to take advantage of this policy, and benefit from the option to settle their trade transaction with their Chinese counterparts in renminbi," he added.
Overall, Ahmad Maslan said the government does not expect the ringgit depreciation impat on SMEs to be very significant, as most SMEs are domestically-oriented with relatively small exposure to the external market.