The evolving trade relationship between China and Chile's agri-food sector highlights a shift in transactional currencies. Traditionally, Chilean exporters conducted business with China using the U.S. dollar. However, there is an increasing trend to operate directly in yuan to mitigate exchange costs and streamline payment processes in the fresh fruit sector. The fluctuation between the dollar and the yuan impacts importers' pricing structures, particularly when the yuan appreciates. This "one-way risk" arises when the yuan strengthens, leading importers to adjust their costs while not benefiting when it depreciates.
Adopting the yuan for transactions not only provides financial benefits but also symbolizes a deeper commitment to integrating with the Chinese market's cultural and commercial landscape. Businesses engage in digital ecosystems, leveraging local tools like WeChat, to ensure stronger partnerships. Platforms such as Ebury offer solutions to facilitate these currency transitions by ensuring regulatory compliance and cost efficiency. In 2024, 51.1% of Chile's fresh fruit exports went to China, as reported by the United Nations COMTRADE database.
Transitioning from the dollar to the yuan is framed as a strategic move rather than simply an operational change. Understanding and speaking the customer's language is highlighted as a pathway to sustaining success in international trade.
Source: Blueberries Consulting
