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.

PBOC renews currency backup from UK and Japan to defend yuan

China renews currency swap deals with UK, Japan to defend yuan

China and Britain renewed their bilateral local currency swap scheme for another three years on Monday, two weeks after Beijing signed a similar deal with Japan, in a sign that Beijing is securing backup in defending its depreciating currency.