In a pilot programme desgned to run in Yunnan and Guanxi, China and ASEAN plan to allow transactions in yuan.
This move will help to increase trade ties between China and ASEAN, as well as protect investors from currency instabilities. In addition, Chinese exporters can avoid foreign currency exposure by settling their business transactions in yuan.
“As China’s role in the global economy becomes more significant, it’s natural that more countries will want to trade in the Chinese currency and to hold it in their reserves,” said Pan Hejun, Vice Mayor of Nanning.
Bloomberg, 30 Jun 2009, China Plans to Start Yuan Settlement With Asean Soon http://www.bloomberg.com/apps/news?pid=20601080&sid=aG7dxkAkzrAk
GoKunming, 1 Jul 2009, Yunnan to conduct yuan business with Southeast Asia in pilot programhttp://gokunming.com/en/blog/item/1008/yunnan_to_conduct_yuan_business_w...
Xinhua, 1 Jul 2009, Yuan for ASEAN trade payment http://news.xinhuanet.com/english/2009-07/01/content_11631508.htm