SHANGHAI – The time is ripe for the internationalisation of the yuan, not least because of growing corporate interest in settling trade transactions in the Chinese currency, Bank of China Chairman Xiao Gang said on Friday.
China is preparing a pilot scheme that will allow designated companies in southern China that do export-import business with Hong Kong and Macau to settle their deals in yuan instead of in Hong Kong or US dollars.
It has also said that members of the Association of Southeast Asian Nations would be permitted to use yuan in their trade with China’s southeastern regions of Guangxi and Yunnan.
Speaking at a financial forum, Xiao said Bank of China, the country’s main foreign-currency bank, would be one of the first lenders to participate in the scheme once the final rules are published. He gave no timeframe for that to happen.
The success of the scheme would depend on the attitude of exporters and importers, which in turn would be partly driven by the stability of the yuan, Xiao said.
-Nampa-Reuters
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