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.

Yuan milestone as onshore direct trade with Singapore dollar starts

The Singapore dollar-yuan parity rate will be set each morning, with the spot trading range 3 per cent above or below that rate. Photo: AP

The yuan will start onshore direct trading with the Singapore dollar today, a milestone in Beijing's ambition to globalise its currency and offering cost savings that should make the yuan more popular in Southeast Asia.

Tuesday, 28 October, 2014, 5:42am

China’s overseas investment schemes set to boost yuan

The yuan pool expanded much more slowly this year than expected, mainly because of new ways for foreign investors to use yuan in mainland China to buy high-yielding assets, as well as yuan being cheaper in offshore markets. Photo: Reuters

The mainland is studying pilot schemes that will allow domestic investors to make overseas investments using the yuan, a move that could pump fresh oxygen into the stagnant offshore yuan pool.

28 Oct 2014 - 3:58am

Sydney expected to get yuan clearing bank soon

China is to boost the internationalisation of the yuan. Photo: Reuters

Beijing is set to accelerate plans to boost the international use of yuan by concluding pacts with key regional trading partners Australia and Singapore.

25 Oct 2014 - 3:41am

China speeds up transformation of yuan into global currency after crisis

Apart from opening its capital account, China also needs to build reliable legal institutions and introduce checks and balances on power in its push to internationalise the yuan to rival the dollar.

As US long bond yields dip below 2 per cent, we are reminded once again that when the world gets nervous, the United States government's funding costs get cheaper.

21 Oct 2014 - 8:15pm 3 comments

Cross-border yuan payment platform next challenge for Beijing

According to Swift, the yuan is the seventh most-used currency for payments.

Launching a long-awaited cross-border yuan payment platform is one of the next challenges Beijing needs to tackle given the complexity in settling yuan trades and as offshore dealing in the currency swells.

20 Oct 2014 - 5:05am

Chinese banks boost new loans amid credit easing

Aggregate financing, which includes loans issued through non-banking channels, reached 1.05 trillion yuan last month. Photo: Bloomberg

16 Oct 2014 - 11:40am

Beijing's political ties crucial to liberalising the yuan

The pattern of yuan swap lines between the People's Bank of China and other central banks has borne testimony to the broad appeal of these measures.

When Xi Jinping touches down in a foreign capital, the odds are that he will pull out of his suitcase a currency deal that host countries will eagerly sign on to as the president furthers Beijing's goals for the internationalisation of the yuan.

13 Oct 2014 - 4:59am

Bailiwick of Jersey keen to be part of global renminbi family

London is becoming the lead centre for yuan in Europe.

Another jurisdiction in Europe is mulling joining the race for a slice of the growing global yuan business pie - the Bailiwick of Jersey, an island sitting between Britain and France.

13 Oct 2014 - 4:13am

Yuan proves to be a bulwark against strong US dollar in Asia

The US dollar is hovering at its strongest level in four years.

A stronger US dollar has historically caused fund managers to flee emerging-market assets but Asia seems to be bucking the trend this time, largely because of the yuan.

9 Oct 2014 - 5:55am

Mainland Chinese banks eye Luxembourg as euro zone hub

Yuan deposits held by banks in Luxembourg are on the rise.

Luxembourg is rapidly growing as a channel for Chinese financing and investments flowing into the European Union.

6 Oct 2014 - 4:10am

City's offshore yuan pool under threat from trade discount

Cheaper offshore yuan means it is more economical for an importer to switch yuan into dollars on mainland than to bring yuan to Hong Kong to settle a trade. Photo: Robert Ng

Hong Kong's offshore yuan pool risks drying up as offshore paper trades at its widest discount in more than two years, prompting mainland importers to avoid coming to Hong Kong to settle their cross-border trades.

6 Oct 2014 - 4:10am

Yuan to start direct trading with euro today

Yuan to start direct trading with euro today

The mainland will start direct trading between the yuan and the euro today as the world's second-largest economy seeks to spur global use of its currency.

30 Sep 2014 - 5:33am

Take a lesson from the West, yuan boost won't spur growth

Who wants to put money into property when you can expect to get less back out than you put in and still have to pay borrowing costs for the privilege?

A 500 billion yuan injection from the People's Bank of China into the country's five biggest banks might not be enough to stave off an economic slowdown in the second half of the year.

28 Sep 2014 - 7:34am 8 comments

Surging yuan trade sees Russia tilt towards China

Despite rising yuan trade, nearly 90 per cent of the US$5.3 trillion a day in 2013 foreign-exchange deals involved US dollars. Photo: Reuters

Vladimir Putin has a secret agent in his campaign to curb the impact of sanctions on Russia's economy: Mr Yuan.

26 Sep 2014 - 5:09am

ADB puts priority on stability in yuan internationalisation

The People's Bank of China's research team had outlined a timeframe to achieve basic convertibility by 2015. Photo: Reuters

The Asian Development Bank said Beijing probably will adopt a new model of currency internationalisation in which capital market development may not be as important as it has been in the past.

24 Sep 2014 - 6:13am