SETTLEMENT IN YUAN FOR CHINA'S X-BORDER TRADE HITS 408 BLN USD BY END-2011
Last Updated: 2012-01-12
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BEIJING, Jan 12 (NNN-XINHUA) -- China's cross-border trade settlement in yuan under current account hit 2.58 trillion yuan (about 408 billion USD) by the end of 2011 since China launched the pilot programme in July 2009, official figures show.

By the end of 2011, China had signed currency swap contracts worth 1.3 trillion yuan with 14 countries and regions, according to a statement posted on the website of the People's Bank of China, the central bank.

In 2011, offshore direct investment denominatd in yuan, also known as Renminbi (RMB), totalled 20.15 billion yuan while foreign direct investment (FDI) settled in RMB on the Chinese mainland topped 90.72 billion yuan, the statement said.

in order to boost the internationalization of yuan and facilitate trade, China announced last year it would broaden the yuan settlement programme to cover the whole nation, expanding a pilot programme previously carried out in 20 provinces, autonomous regions and municipalities.

Although currently the yuan is not fully convertible under the capital account, China has moved gradually to promote the currency's internationalization over the past few years.

The Chinese government allowed Hong Kong to establish an offshore yuan market, which has fueled RMB-denominated activities there. By the end of November, 2011, Hong Kong had issued 25.6 billion yuan of RMB loans and its RMB deposits outstanding totalled 627.3 billion yuan, accounting for around 10 per cent of the total bank deposits in Hong Kong.

In order to further boost the international use of yuan, the statement said China will work to widen yuan transaction channels and step up financial services for yuan-denominated investments. -- NNN-XINHUA