The Chinese yuan, also known as the renminbi, is already convertible under the current account - the broadest measure of trade in goods and services. However, the capital account, which covers portfolio investment and borrowing, is still closely managed by Beijing because of worries about abrupt capital flows.

Beijing's international payments system scaled back for launch

The scaled back CIPS is a setback for Shanghai's push to upstage Hong Kong as an offshore yuan hub. Photo: Reuters

Beijing is set to launch a watered-down version of its long-awaited international payments system, using it only for cross-border yuan trade deals rather than also including capital-related transactions, two people with direct knowledge of the matter said.

Monday, 13 July, 2015, 9:32pm

Yuan seen stable in second half as Beijing seeks to achieve globalisation

Beijing is keen to keep the yuan stable even if that means allowing it to strengthen. Photo: Reuters

Three critical events the market expects to see happen over the next six to twelve months around yuan globalisation: MSCI inclusion, the Shenzhen-Shanghai stock connect, and the IMF SDR review

28 Jun 2015 - 7:30pm

Beijing is on the right path with currency management

Beijing is on the right path with currency management

Many economists and critics in the US Congress may remain unconvinced that the mainland no longer enjoys an unfair trade advantage, but the International Monetary Fund has just turned down the heat on China by reversing long-standing criticism of its currency management.

31 May 2015 - 4:03am

Yuan's inclusion in IMF's currency basket faces economic, political hurdles

Despite the yuan's leading share in world trade, controversies remain over whether it fits the IMF's criteria of being 'freely usable'. Photo: Reuters

The International Monetary Fund's finding that the yuan is no longer undervalued would appear to boost its chances of inclusion in the agency's Special Drawing Rights basket.

28 May 2015 - 9:08am 6 comments

China's yuan no longer undervalued, says IMF

The International Monetary Fund has called on China to implement further policy reforms. Photo: AFP

Agency declares currency level 'fair' for first time in decade as it urges faster reforms and a more flexible exchange rate.

27 May 2015 - 8:31am 2 comments

PBOC to further ease yuan capital controls in reserve currency bid

Over the past decade, Chinese exports have become a larger slice of global trade while the yuan's use in trade and settlement has expanded significantly. Photo: Bloomberg

PBOC governor Zhou Xiaochuan pledged to further liberalise capital account controls this year in a bid to create conditions for the IMF to include the yuan as an international reserve currency.

23 Mar 2015 - 9:43am

Stanchart revises down forecast for yuan’s value versus dollar in 2015

Chinese yuan bank notes in Beijing. Standard Chartered Bank revised downwards its forecast of the value of the yuan against the US dollar in 2015. Photo: Reuters

Standard Chartered has sharply revised down its forecast on the Chinese yuan’s value against the US dollar in 2015, on speculation Beijing may be reluctant to allow its currency to continue strengthening amid subdued regional trade.

12 Jan 2015 - 4:02pm

European renminbi payments double, with Britain and Germany leading way

Europe accounted for a tenth of global renminbi payment value in July. Photo: AFP

European efforts to attract more yuan business are beginning to deliver fruit, with yuan payments exchanged with mainland China and Hong Kong more than doubling in the past year.

28 Aug 2014 - 4:11am

Yuan trade settlement value declines by 12pc in July

July's trade value settled in yuan fell to 498.4 billion yuan (HK$626.6 billion), down 12 per cent from a month earlier, according to the People's Bank of China. Photo: AFP

Cross-border yuan trade settlement last month fell to the lowest level since February even as the total value of imports and exports shot up.

20 Aug 2014 - 10:12pm

Singapore beats London as offshore yuan hubs jostle for new positions

Singapore overtook London to become the biggest offshore renminbi centre outside Hong Kong. Photo: AFP

Singapore, the US, Australia and South Korea emerged as the offshore hubs that saw their shares of the renminbi payments market grow the most in the past year.

30 Jul 2014 - 8:42am

Yuan to trade directly with UK pound

Analysts say direct yuan-pound trades will benefit the City of London by providing quick and transparent pricing. Photo: Bloomberg

While Premier Li Keqiang tours Britain, the yuan took another major step on its global journey yesterday as Beijing said the currency will start trading directly with the British pound from today.

19 Jun 2014 - 12:55am

Economic reforms alone won't put the renminbi in the dollar's league

Economic reforms alone won't put the renminbi in the dollar's league

Scarcely a week passes without news about the ascendance of the renminbi. But China has a long way to go before its currency can rival - let alone displace - the US dollar as the dominant global reserve currency.

19 May 2014 - 2:32am

Direct conversion between yuan and euro is on the way

Direct conversion between the renminbi and the euro is likely. Photo: EPA

Direct conversion between the renminbi and the yen, which began about two years ago, has been an important milestone in the process of internationalising the Chinese currency.

14 May 2014 - 2:15am

March of renminbi as global currency has passed the point of no return

People queue up at an office of the service centre of China (Shanghai) Pilot Free Trade Zone, in Shanghai. Photo: Reuters

Will renminbi internationalisation flop? What if China grinds everything to a halt?" These are questions raised by clients during my recent roadshow in Europe.

7 May 2014 - 1:55am 1 comment

Price volatility signals the yuan is closer to becoming a global currency

Price volatility signals the yuan is closer to becoming a global currency

The recent dip in the value of the Chinese currency surprised many in the markets, but it shouldn't have. The renminbi occupies a position all of its own: it might be the key accessing the world's most dynamic large economy but it is also protected with exchange and capital controls.

5 May 2014 - 3:01am