Yuan Ascendent: Cross-Border Trade Uses Chinese Currency

From Wall Street Journal:

Three Shanghai companies used the yuan to settle cross-border trade deals for the first time Monday, a step toward promoting broader use of the Chinese internationally and, over time, reducing China’s dependence on the dollar.

Bank of China Ltd. settled a trading deal by a unit of Shanghai Electric Group, a manufacturer of mechanical and electrical equipment. Bank of Communications Ltd. settled trades by Shanghai Silk Group Co., a textiles exporter, and by a Shanghai-based trading house whose English name wasn’t available.

Chinese officials have said the yuan-based trade experiment is aimed at helping companies reduce the risks of exchange-rate fluctuations, which have led to significant losses at some exporters recently amid global financial-market turbulence. Officials also have in recent months voiced concerns about China’s dependence on the dollar, which is used for most cross-border deals and which comprises the majority of China’s roughly $2 trillion in foreign-exchange reserves.

SUPPORT CDT

CDT on Twitter

Google Ads 1

CDT EBOOKS

Giving Assistant

Amazon Smile

Google Ads 2

Anti-censorship Tools

Life Without Walls

Click on the image to download Firefly for circumvention

Open popup
X

Welcome back!

CDT is a non-profit media site, and we need your support. Your contribution will help us provide more translations, breaking news, and other content you love.