FROM U.S. CHINA BASED BUSINESS MAN-"YOU REALLY NEED TO UNDERSTAND WHAT HE IS SAYING”-SQ
1.) Our US based Clients have recently begun negotiating/implementing changes to the terms of our Purchasing Agreements that will allow them the ability to pay in currencies other than the US Dollar. Usually, the most requested forms of payment are now in either RMB/Yuan, Euros, Rubles, or Dinars.
2.) Tied to this, we have also noticed that our US based Clients are relocating their payment centers out of the US, usually from New York. Instead, we are now being told that we will need to be invoicing our US Clients through their new payment offices, located in such places as Dubai, Singapore or more times than not; Hong Kong. Also, those same individuals/Department VPs, usually based out of New York, we are now finding, have also suddenly relocated to these various countries in order to set up their new payment centers.
The companies involved are household names.
So if they are starting to diversify their payment centers away from using US Dollars, we (meaning I and my Chinese partner), can only assume that they know something is coming and that being tied to a US Dollar based transaction could place them at a competitive disadvantage.
Jun 25, 2015