China Will Expand Cross-Border Yuan

The government will push for further opening of its financial markets to increase channels for overseas investors to obtain and use the Chinese currency, the People?s Bank of China said in a report. It will also look at setting up exchange-rate mechanisms between the yuan and some ?minor? currencies on China?s interbank market, the report said.
Since 1993, China?s central bank has signed agreements with Vietnam, Mongolia, Russia, Kyrgyzstan, Laos, North Korea, Nepal and Kazakhstan about using local currencies in bilateral trade, according to the report. The PBOC has also permitted six local lenders to finance overseas projects in yuan since November, it said.
China started to allow businesses to use yuan in cross-border trade in July 2009. In the past two months, China has started yuan spot trading versus Malaysia?s ringgit, allowed offshore trading of the currency in Hong Kong and announced the opening of its bond market to foreign banks.

Source : Konaxis

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