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Moves towards yuan convertibility begin to pick up pace

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Look out, dollar. Watch it, yen. The yuan is going global.

The 'internationalisation' of China's currency is expected to be a highlight of Premier Wen Jiabao's speech for China's 12th five-year plan, during the nation's annual parliamentary session in Beijing next month.

The groundwork for the acceleration of the currency's emergence on the world stage was laid two months ago when the central bank - the People's Bank of China - stated that the nation 'has good reason to expand its opening-up of capital accounts in the mid-term'.

The opaque language was interpreted by currency managers as a sign the bank was looking at making the yuan internationally convertible. And though 'mid-term' wasn't clearly defined it is commonly used by mainland economic planners to refer to a five-year period.

In short, the central bank seemed to be setting its sights on full convertibility of the yuan by the end of the coming five-year plan, or at the end of 2015.

The intense anticipation in the market means the internationalisation of the yuan will be one of the biggest global trends to watch this year, according to Nariman Behravesh, chief economist from HIS Global Insight.

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