China allows 2 banks in HK to sell yuan bondsSubmitted by Gmartine on Tue, 05/19/2009 - 08:37
"Two major banks outside mainland China said Tuesday they've become the first foreign companies granted approval to sell bonds in Chinese yuan - a step toward making it an international currency"
"It marks the first time firms based outside the mainland have been given the OK to sell such debt securities in Hong Kong, a move that furthers Beijing's goal of promoting the yuan as an alternative to the U.S. dollar for international trade and reserves."
"Last month, the government announced plans to allow Shanghai and four other major cities to settle foreign trade in yuan - also known as the renminbi - rather than in dollars. The central bank has signed a string of agreements in recent months promising to lend yuan to Hong Kong, South Korea, Malaysia, Indonesia, Belarus and Argentina that could lead more firms importing from China to pay in yuan."
"The government is trying to become less reliant on U.S. dollars as a reserve currency, with a longer-term goal to make the renminbi a more global currency," said Kelvin Lau, regional economist at Standard Chartered ( SCBEF.PK - news - people ) Bank."