'Yuan should have bigger role' - Yam
26-11-2008
The Chief Executive of the Monetary Authority, Joseph Yam, says now is the right time to allow the yuan to play a bigger role in the international market. Speaking at the end of a two-day visit to Beijing, Mr Yam said recent volatility on currency markets made it difficult for importers and exporters to manage their risk. He said the mainland had been discussing the possibility of using yuan to settle trade between Hong Kong and the mainland. A wider role for the yuan, he said, was backed by various mainland authorities. Mr Yam also said the People's Bank of China was considering lifting the limitations on the renmibi bond business in Hong Kong. Currently the size of such bond sales and who's allowed to sell the bonds are restricted. Mr Yam said he hoped more financial institutions would be allowed to sell renminbi bonds.
