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.

U.S. 100 dollar banknotes and a Chinese 100 yuan banknote Photo: Reuters, Jason Lee

The yuan trades slightly stronger on Wednesday

The yuan traded slightly higher on Wednesday after the country’s central bank strengthened its mid-price.

Offshore yuan in Hong Kong traded at 6.4996 to the US dollar at 10.45 on Wednesday, 0.02 per cent, or 11 basis points, stronger than on Tuesday.