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Yuan settlement trials planned in more cities

By Ding Qingfen (China Daily)
Updated: 2009-08-25 08:07

Despite the small scale of business settled through the new yuan trade settlement program, the government said yesterday that it would expand the trials to more cities and covering more nations after further improving the rules and regulations governing the process.

Six ministries including the People's Bank of China, Ministry of Finance, Ministry of Commerce and the Customs made the statement yesterday.

"The enthusiasm (from companies and cities for the trial) is there," but unfortunately, "small deals were made during the past month", said Li Bo, director of department of treaty and law under the People's Bank of China.

"It is a brand new project, and we all need time to learn and implement it", he said.

"We will, clarify and develop the relevant policies to make it more convenient for companies to do business under the program, and later expand the trial regions from the current Shanghai municipality and four cities in Guangdong province to more cities, and also add more countries," Li said.

According to Zhang Yansheng, director of Institute for International Economic Research under the National Development and Reform Commission, the yuan settlement trials are of great importance but can only be effective if it is backed up with supporting measures.

"The program would increase the liquidity of the yuan outside China and help promote stability of China's exports," the ministries said.

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