China to gradually increase cross-frontier utilization of yuan this year


(MENAFN) According to China’s central bank, the country is considering “steadily and prudently” encouraging internationalization of its currency, the yuan, vowing to enhance the tracking of cross-frontier capital flows and avoid systemic hazards.

The Regional Comprehensive Economic Partnership (RCEP) deal is projected to further strengthen trade relations between the countries in the Asia-Pacific region, therefore encouraging further chances for the utilization of the yuan in shared settlements and investment activities, said the regulator.

The deal was reached in late 2020 at an online summit of the Association of Southeast Asian Nations held by Vietnam. Based upon quickly growing yuan-denominated commodity trade settlements, the country’s regime is reportedly aspiring to raise the utilization of the currency in cross-frontier e-commerce.

The People’s Bank of China further said that it is intending to discover more alternatives for yuan-denominated investment and financing. The regulator will as well improve currency settlement collaboration with other nations, and enhance the infrastructure for settlement and clearing.

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