Friday, December 31, 2010
Internationalization of Renminbi-IV
On 2 July 2009, China’s central Bank, Bank of China, issued detailed rules for cross-border trade settled in yuan, or Renminbi. The first transactions with Hong Kong and Macao starts in July using yuan. The central government also approved five cities: Shanghai, Shenzhen, Guangzhou, Zhuhai, and Gongguan to settle international trade in Chinese currency (PBOC web). This reminds people of 1984 when the central government began to create four Special Economic Zone (SEZs) in southern China, eventually leading China to today’s economy power house. Will Renminbi be internationalized during the 21st century?