NewAn evolutionary time line of China’s yuan
China’s currency has made tremendous strikes over the past two decades towards acceptance as a major international reserve currency
2003 November: State Council gave green light for banks in Hong Kong to provide yuan-deposit, remittance, exchange and credit card services. Hong Kong residents can exchange up to 20,000 yuan per day and remit 80,000 yuan per day.
2005 July: Beijing abolishes the yuan-US dollar and in its place introduces a managed float system set around a daily mid-point price announced by People’s Bank of China. Initially, the currency was allowed to fluctuate 0.3 per cent of the midpoint on any single day, but the daily band has since been widened to a 2 per cent.
2009 June: RMB internationalisation process begin. The HKMA and PBOC signed an agreement to allow trade between Hong Kong and the mainland to be settled in yuan from in five cities.
2010 June: Cross border yuan trade settlement scheme expanded to 20 provinces and cities.
2010 July: Beijing allows yuan transfers among financial firms and individuals to facilitate the developement of funds, insurance and other investment products denominated in yuan. First yuan corporate bond issued in Hong Kong by Hopewell Highway Infrastructure to raise 1 billion yuan.
2010 August: PBOC allows yuan clearing banks and other overseas eligible financial institutions to trade directly in mainland interbank market.