December 24, 2008
Yuan Trade Settlement - Big Step Toward Currency Convertibility
Beijing will soon allow several trials of Yuan trade settlement. First trade between the Pearl River Delta megalopolis, China's export powerhouse, and the Yangtze delta region - the "Dragon's Head" of Shanghai. And trade between the Hong Kong and Macau special administrative areas. Additionally, certain businesses in Hong Kong may also settle in Yuan. On the horizon will be a trial to settle trade between Yunnan and Guangxi and ASEAN nations in Yuan. (source:Dow Jones/WSJ)
This is a very significant change and important to watch closely as it represents a first step toward Beijing's plan of turning the Yuan into a regional Asian currency.
In a related move, Beijing will allow Taiwan banks operating on the mainland to offer Yuan services.
Labels: chinese trade, currencies, foreign trade, yuan
# posted by Sinomania! : 12/24/2008 10:20:00 AM
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