China Begins Trial Scheme for Yuan Trade Settlement

(RTT News)

Monday, China has commenced a pilot scheme for companies to settle cross-border trade transactions in the yuan or the renminbi, reports said. Currently, some Shanghai companies have already agreed to settle deals with their Hong Kong and Indonesian trading partners. The move is widely seen as China’s attempt to globalize the use of the yuan in trade transactions, thereby lessening the use of the U. S. dollar. […]

In June, China reiterated its call for a new global reserve currency to replace the U.S. dollar. The People's Bank of China said there is a need to create an international reserve currency with a stable value in the long term to avoid the shortcomings of sovereign currencies for maintaining reserves. Read more here.