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.

Onshore yuan traded in Shanghai edged down 0.06 per cent in early trade to 6.6605 per US dollar. Photo: Cpressphoto

Currencies flat ahead of key speech by US Fed chair

The Chinese yuan and other major currencies traded within a narrow range on Thursday morning, with markets generally holding back for any hints of possible US interest rate movements from US Federal Reserve chairwoman Janet Yellen on Friday.