Asia now accounts for more than a third of global trade, yet many Western firms still push every invoice through U.S. dollars or euros. That habit piles on foreign-exchange spreads, leaves suppliers to swallow conversion costs and slows settlement when funds detour through correspondent banks. Switching to regional settlement units can cut fees by half, lift approval rates and deepen commercial trust. Below are the five currencies most likely to give you a friction-free payment experience with Asian partners—presented in no particular order, because the “best” pick depends on where your counterpart sits and how each side manages cash.
Chinese yuan (CNY/RMB)
China’s renminbi is already the world’s fifth-most-used payment currency and climbs the SWIFT charts each quarter. A growing offshore RMB pool in Hong Kong, London and Singapore means you no longer need an account on the mainland to hold or remit yuan. Direct clearing banks in twenty-five jurisdictions let corporates route RMB payments without touching the dollar, dodging multiple FX legs and reducing settlement to T + 0 or T + 1.
Japanese yen (JPY)
With deep liquidity and famously tight bid–ask spreads, the yen remains Asia’s anchor funding currency. For buyers of high-tech components or machine tools, invoicing in JPY shields the supplier from FX risk and often wins a price break. Same-day settlement via BOJ-NET and extensive correspondent networks make yen payments as quick as domestic wires; pair that with a forward contract to lock your dollar or euro cost and the maths looks compelling.
Singapore dollar (SGD)
Singapore sits at the intersection of ASEAN supply chains, and its currency enjoys both stability and low transaction costs. Most regional banks clear SGD through MEPS+, the real-time gross-settlement system, giving near-instant credits during Asian business hours. Holding an SGD balance in a multi-currency account also unlocks fee-friendly corridors to Malaysia, Indonesia and Thailand, because many fintechs route those legs through the island’s banking hub.
Hong Kong dollar (HKD)
Pegged to the U.S. dollar yet governed by Asia-centric regulation, the Hong Kong dollar offers the best of both worlds: predictable exchange stability and fast local clearing through the HK-RTGS system. It is the currency of choice for settling invoices tied to Southern China manufacturing clusters, especially when suppliers maintain HSBC or Standard Chartered accounts. In trade-finance circles, HKD letters of credit clear faster than RMB ones and avoid mainland documentation hurdles.
Indian rupee (INR)
India’s Unified Payments Interface turned domestic transfers into a free, real-time service, and regulators are now extending that efficiency to cross-border corridors via UPI-link agreements with Singapore and the UAE. Accepting rupees keeps GST calculations clean for Indian exporters and spares them the 2 %-plus spread local banks tack onto incoming dollars. For foreign payers, non-deliverable forward contracts hedge INR exposure without tying up local accounts.
Putting it into practice
- Open a multi-currency account that supports at least three of the five units above and publishes real-time FX mark-ups.
- Ask each supplier which currency lowers their bank fees and whether a local-currency price discount applies.
- Hedge only the net exposure—outbound minus inbound—so premiums stay lean.
- Automate your ERP to tag payables by currency, triggering the correct rail (CIPS, BOJ-NET, MEPS+, HK-RTGS or UPI) and storing the confirmation ID for audit.
Adopt these habits and “seamless transactions with Asian partners” stops being a slogan. It becomes a measurable edge in speed, cost and relationship strength—three levers every finance leader wants firmly in hand.