Hong Kong could provide a good testing ground for the gradual liberalisation of the yuan as the currency spreads beyond the mainland, according to Hong Kong Monetary Authority chief executive Joseph Yam Chi-kwong.
In his weekly online Viewpoint column published yesterday, Mr Yam said Hong Kong could play a part in the Chinese currency's role by 'cautiously implementing liberalisation measures'.
'I am sure a wider use of the [yuan] in the region or even beyond will have to be a gradual process and carefully controlled to ensure that the possible risks are properly managed,' he said.
His remarks come as Hong Kong prepares to begin yuan-denominated trade settlements, which will allow exporters and importers in Guangdong and the Yangtze River Delta to settle cross-border deals in yuan.
Chief Executive Donald Tsang Yam-kuen said last week the measure would help the city's bid to become a regional yuan clearing centre.
Mr Yam also noted the global currency system could change in the future in view of China's rapid rise.
