Pilot program to settle foreign trade accounts using Chinese currency instead of US dollars
Exporters to settle trades using renminbi
8 January 2009
The People’s Bank of China (PBoC) announced Tuesday that it will launch a pilot program to settle foreign trade accounts using Chinese currency instead of US dollars, state media reported. China will allow Guangdong, the Yangze River Delta, Hong Kong and Macau to use the renminbi for settlement of trade transactions, reducing Chinese exporters’ exposure to the recent volatility of the US dollar against the renminbi. Exporters from Guangxi Zhuang autonomous region and Yunnan province will also be allowed to use renminbi to settle trade payments with members of the Association for South East Asian Nations. The PBoC said it will make the RMB exchange rate more flexible but also seek to maintain stability. "We’ll actively join international efforts to tackle the global financial crisis while safeguarding national interests," the bank said.