For some companies, tackling the rising value of the renminbi is the central challenge occupying their treasury operations. But for VST Holdings, a distributor of information technology products and components in Asia, the climbing currency is welcomed with open arms.
William Ong, chief financial officer and executive director at VST, which generates more than two-thirds of its revenue in mainland China, shapes the company’s business model using what he calls a “3-in-1 solution”. The solution has three components -- deposits, loans and non-deliverable forwards NDF -- and enables the company to hedge its renminbi exposure. “We settle our transactions in China in renminbi and deposit it with a bank at a fixed rate...
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