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.
HSBC Holdings and Standard Chartered sold 1.5 billion yuan (HK$1.9 billion) worth of notes in Singapore yesterday in the first dim sum bond issuances since yuan-clearing became available in the city state.Tuesday, 28 May, 2013, 3:05am
A Chinese central bank adviser sees the Renminbi superseding the US dollar as the global currency and predicts full liberalization of China’s capital account between 2015 and 2020, the China Securities Journal reported on Monday.27 May 2013 - 10:44pm 1 comment
ICBC's Singapore branch said it would start yuan clearing bank services for participating banks. That might divert some yuan flows from Hong Kong because another yuan clearing bank in addition to Bank of China (Hong Kong) can now provide the service, said Woody Chan, Citic Bank International's executive vice president and treasurer.25 May 2013 - 2:53am
Average daily volume was 6.5 billion yuan (HK$8.2 billion) so far this year, compared with 1.8 billion yuan for the same period last year, according to the Chinese Gold & Silver Exchange Society. That exceeds the 4.9 billion yuan target set when the contracts were introduced in October 2011.25 May 2013 - 4:44am
The biggest bank in Singapore expects yuan liquidity in the country to grow up to threefold from 100 billion yuan (HK$126 billion) in two to three years after the launch of clearing services for the currency there.22 May 2013 - 4:04am
Great excitement followed Beijing's announcement on Monday that it will draw up an "operational plan" this year for deregulating domestic interest rates and making the yuan fully convertible.
A whole legion of analysts reacted by predicting the liberalisation of China's exchange rate during the next couple of years, and full convertibility within five years.8 May 2013 - 5:20am 1 comment
In a circular to commercial banks the State Administration of Foreign Exchange (SAFE) introduced for the first time a minimum net open position in US dollars, restricting banks' capacity to lend in the greenback.7 May 2013 - 4:17am
Though hardly a week goes by without news of the increasing international role of the yuan, it tends to be of immediate interest to market professionals because it is so gradual. Beijing's capital account restrictions to safeguard the nation's fragile financial system account for that. Occasionally, however, a landmark development gets wider attention.1 May 2013 - 2:32am 1 comment
The yuan will eventually be a feasible currency for Hong Kong to peg its dollar against, in place of the US dollar, said John Greenwood, known as the "father of the Hong Kong-dollar peg".30 Apr 2013 - 4:48am 7 comments
HKMA chief Norman Chan Tak-lam said the move would "deepen and enhance" Hong Kong's role as a clearing and trading centre for the yuan. While the currency is not fully convertible, Beijing has relaxed rules since 2009 to encourage international businesses and investors to settle trade and investment deals in yuan.26 Apr 2013 - 4:19am