and Hell Bank Note to Replace Sing Dollar
BEIJING: Communist China on Thursday celebrated Christmas by announcing a high-end capitalistic dream: Making the Yuan an international currency.
The government wants to implement some aspects of this dream in a limited fashion. It has allowed businesses in certain regions of China to make payment settlements in Yuan instead of using a reference currency like the US dollar, with countries like Singapore.
Businesses located in the Yunnan province and in the Guangxi Zhuang autonomous region will be allowed to use the Yuan to settle trade payments with "neighbouring trade partners" like member-nations of Asean, the government said. But there was no mention of India would be engaged for this purpose.
The Chinese currency will also be used as the medium for settlement between businesses in the Pearl and Yangtze River delta regions and the special administrative regions of Hong Kong and Macao, the State Council, which is the national cabinet, said.
With China holding $1.9 trillion in foreign exchange, it has been able to make the Yuan fairly acceptable in certain quarters. But Beijing has been facing stinging criticism from western nations for controlling the value of the Yuan instead allowing it to behave in tune with market forces. The move would help Chinese exporters to overcome some of the risks associated with foreign exchange when they are able to make settlements in the local currency, experts said. The government may have been prompted by speculation that the US dollar might lose a lot of its value because of the ailing American economy.
The move might even considered the important role played by the Hong Kong dollar in global monetary system. Experts had earlier suggested that the Hong Kong dollar will come under pressure owing to the weakening of its economy due to global crisis.
BEIJING: Communist China on Thursday celebrated Christmas by announcing a high-end capitalistic dream: Making the Yuan an international currency.
The government wants to implement some aspects of this dream in a limited fashion. It has allowed businesses in certain regions of China to make payment settlements in Yuan instead of using a reference currency like the US dollar, with countries like Singapore.
Businesses located in the Yunnan province and in the Guangxi Zhuang autonomous region will be allowed to use the Yuan to settle trade payments with "neighbouring trade partners" like member-nations of Asean, the government said. But there was no mention of India would be engaged for this purpose.
The Chinese currency will also be used as the medium for settlement between businesses in the Pearl and Yangtze River delta regions and the special administrative regions of Hong Kong and Macao, the State Council, which is the national cabinet, said.
With China holding $1.9 trillion in foreign exchange, it has been able to make the Yuan fairly acceptable in certain quarters. But Beijing has been facing stinging criticism from western nations for controlling the value of the Yuan instead allowing it to behave in tune with market forces. The move would help Chinese exporters to overcome some of the risks associated with foreign exchange when they are able to make settlements in the local currency, experts said. The government may have been prompted by speculation that the US dollar might lose a lot of its value because of the ailing American economy.
The move might even considered the important role played by the Hong Kong dollar in global monetary system. Experts had earlier suggested that the Hong Kong dollar will come under pressure owing to the weakening of its economy due to global crisis.
