China making Yuan Popular

Since last few years People’s Bank of China (PBOC) is putting lot of efforts to  promote the use of the Chinese currency in foreign trade and its rise as a global currency. All Chinese enterprises with an import-and-export license will now be allowed to settle their foreign trade in Yuan which was allowed to selected businesses previously. PBOC  move is to meet market demand and make foreign trade more free and convenient. It started in July 2009, and   cross-border RMB settlement was initially introduced in Shanghai and  4 cities and only 365 goods exporters were selected to be Mainland Designated Enterprises (MDE). In June 2010, the number of MDEs had substantially increased from 365 to 67,359 with the region for the pilot area expanding to 20 provinces. Since then, all companies in these 20 provinces are eligible to settle trade in RMB for import, export of services and other current account items. In August 2011, the pilot area for Yuan-denominated cross-border trade settlement was further extended to the whole country. In the past two years, cross-border RMB settlement size has steadily increased in conjunction with the demand of enterprises to participate in RMB settlement