Source: CCTV.com

04-09-2009 09:06

The State Council has actually previously allowed several of its provinces and cities to use the yuan for trade settlements in trials. In December last year, the provinces of Yunnan and Guangxi were permitted to use yuan in trade settlements with the Association of Southeast Asian Nations, or ASEAN. The Pearl and Yangtze River delta regions were permitted to use yuan for settlement of trade with Hong Kong and Macao.

The State Council has actually previously allowed several of its provinces and cities to use the yuan for trade settlements in trials.

In fact, China started yuan settlement with neighboring countries as early as the 1990s. According to the Central Bank, China has signed yuan settlement agreements with Vietnam, Mongolia, Laos, Nepal, Russia, Kyrgyzstan, Kazakhstan and the DPRK. The Chinese currency was used in trade settlement worth 23 billion yuan last year.

Some analysts even say the Chinese RMB is already a semi-international currency. This is not only because the yuan is used in trading with neighboring countries. It is also used in international bank transactions when Chinese bank cards are used overseas.

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Editor:Xiong Qu