China will allow overseas central banks to trade in the onshore foreign-exchange market, Premier Li Keqiang said in a keynote speech at a World Economic Forum meeting Thursday.
The nation will keep the yuan stable at a reasonable, equilibrium level, he said. Overseas monetary authorities have already been granted access to China’s interbank bond market, encouraging them to hold yuan-denominated assets in their reserves.
“Not long ago, we allowed foreign central banks to participate in the interbank bond market,” Li said. “The next step is to allow foreign central banks to directly participate in the interbank foreign-exchange market. Before the end of this year, we will complete the cross-border yuan payment system that facilitates the development of the offshore yuan market.”…Bloomberg News
China Opens Onshore Currency Market to Foreign Central Banks
3 comments:
Get ready for the day when Juan wants to be paid in Yuan.
Xiànjīn, por favor.
"cross-border yuan payment system"
this is at least sloppy language....
Right. What they mean is international payments system,
Until NIxon shut the gold window, the USD as the reserve currency was pegged to gold and final settlement took place in gold at the fixed rate, with other currencies floating relative to the USD, which was the international unit.
The physical payments system was located at the NY Fed and the gold was transferred physically in the deep vault by the "gnomes" based on the daily manifest. Gold could be repatriated, of course, but generally it was left at the Fed for settlement.
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