Source: CCTV.com
04-09-2009 09:01
China has taken a step towards using the RMB to settle trade with Hong Kong and some other neighboring trade partners. It has named five cities that will participate in the trials.
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| China has taken a step towards using the RMB to settle trade with Hong Kong and some other neighboring trade partners. |
The State Council has named Shanghai, as well as four other cities in southern China's province of Guangdong to start the trial scheme. Those four cities are Guangzhou, Shenzhen, Zhuhai and Dongguan.
The approval paves the way for municipal authorities to make specific arrangements for the launch of the programme. Its general outline was unveiled in December.
The State Council said in a statement that carrying out RMB settlement in cross-border trade has significant meaning for the promotion of bilateral trade with neighboring countries and regions. RMB settlement would also help to prevent exchange rate risks and to promote stable foreign trade growth.
The State Council also urges the relevant departments to issue management rules as soon as possible, to regulate RMB trade settlement activities and maintain a stable progress of trial work.
Background:
Key policy changes of Chinese yuan >>
Background of RMB settlement >>
China's recent currency swap agreements >>
Analysis:
Video: Expert analyses the global future of RMB
Response:
Hong Kong welcomes mainland move
The Hong Kong S-A-R government has welcomed the Mainland move. The S-A-R says it's completed the necessary technical preparations to become the first partner outside the Mainland in the pilot program. Hong Kong is already conducting some yuan service. Full story >>
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Editor:Xiong Qu
