Trade finance in local currency up in Asia Pacific

Given the rate gaps, there is a preference for using yuan or yen as financing currencies, says JPMorgan's Zhang

- Shayan Ghosh

There has been a mild decline in the use of US dollars for trade finance in the Asia Pacific region on the back of higher interest rates, with demand for local currency financing increasing to fill the gap, according to a senior banker at JPMorgan.

Currency trends have been very interesting over the last few years, specifically in trade finance, Charley Zhang, head of trade and working capital, APAC at JPMorgan, said in a virtual interview.