I have been following what China has been doing with its currency since the head of China�s central bank proposed replacing the dollar with an international reserve currency at April’s G20 meeting. Today the chairman of China’s second largest bank, China Construction Bank, said that he is exploring offering renminbi-denominated trade finance credit that could make the Chinese currency more widely used internationally. More…
Since December, China has signed currency swap agreements with seven of its trading partners including Argentina, Belarus, Brazil, Hong Kong, Indonesia, Malaysia and South Korea which enables these countries to pay for Chinese exports in yuan rather than dollars. This means that 95 billion, in what would normally be dollars, will now be transacted in 650 billion yuan over three years.
Tom,
Forex Turtle