Bank of China Opens for Renminbi Trade in U.S.
Call it liberalization by a thousand cuts.The Bank of China, one of the country’s main state-owned lenders, is now allowing American firms to trade in renminbi, another step in China’s effort to position the the renminbi on the world stage.
In July, China started a renminbi settlement system for cross-border trade in Hong Kong, but it placed limits on how much currency could be exchanged.
Currency trading in the renminbi was already possible at other banks, but the move by a state-owned lender signals a shift in official policy.
The Chinese central bank bowed to international pressure last summer and agreed to make its currency more flexible; the renminbi is now allowed to move as much as 0.5 percent each day. At the same time, the country is cautiously pursuing a strategy of making the renminbi into an international exchange currency.
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1 comment:
China, being who and what they are, are pushing the USA on every front. They would love to see their currency become the world standard (and it WILLand if it means the US takes a severe econmic downturn, so be it. They are not concerned about the effect on THEIR population. the ruling elite in China will still live in luxury. China has a very long term view in all of their action- social, economic, and military. We, in the USA, just put out the next fire. Soon, China will present just too many fires to extinguish. Ask around...or pay more attention.
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