Beijing's political ties crucial to liberalising the yuan

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.

Xi's overseas trips, events that have long been choreographed around business and trade initiatives, have been illuminating for the way they have served to map out the reach of Beijing's currency policies on the world stage.

The mainland authorities' efforts to promote the international use of the yuan stand in contrast to the apparent hesitancy that marked their go-slow attitudes on monetary policy before 2008.

Beijing is evidently mindful of the wider benefits that come from this activism, such as the political support gained from countries that back its currency initiatives.

The central banks that have given high-profile endorsement of China's monetary ambitions are striking for their geographic spread and the economic diversity they represent. They stretch from Iceland in developed Europe to Argentina in developing South America.

Xi's tour of Europe in March - his first trip to the continent as president - provided an insight into how China's yuan agenda was advanced on the back of high-profile visits.