Seaspan deal spotlights renminbi settlements in China orders, but dollar dominance unchallenged
Seapan’s latest newbuilding orders have put shipbuilding paid by Chinese currency in the spotlight
Despite Beijing’s renminbi internationalisation ambition and China’s current favorable interest rates, settling shipbuilding contracts in its currency still encounters many constraints. Most stakeholders in this deal — the charterer, lenders, the yard — are overwhelmingly Chinese firms. Critically, as the vessel buyer, the shipowner requires substantial renminbi income to hedge against risks from volatile foreign exchange
