CHINEESE CURRENCY YUAN GOES GLOBAL
As Dollar and Euro falls in World Currency Market Yuan is emerging as the new world currency .
All signs point to the Chinese yuan emerging as a second world currency after the US dollar. A key step in this development was taken in late December when China and Japan agreed to conduct future bilateral trade directly in the Chinese currency.
Major milestones
- Reforms began in 2004 when Hong Kong residents were allowed to open renminbi bank and credit card accounts
- In 2009, China launched a pilot scheme allowing yuan to be used to pay for imports and exports
- In 2010, more restrictions were lifted, allowing any company in any country to settle trade transactions with Chinese firms in renminbi
- Another key step has been the development of the offshore yuan debt market or dim sum bond market in Hong Kong
- Multinationals like McDonalds, Tesco and HSBC have issued yuan debt
