These difficulties arise not just from the exchange controls in China but also from processing problems that can occur during the transaction. A number of the Australian companies have also noted that some of their Chinese counterparts have, to date, had only limited appetite for invoicing in RMB.
In time, it is likely that these constraints will be overcome: deep and liquid markets will develop, settlement processing will be improved and the appetite for invoicing in RMB will grow. If this assessment is correct, then it is likely the RMB will become the invoicing currency of choice for many businesses on both sides of our trading relationship. 2.