On May 26, BBC Chinese reported on news received from major Japanese media on the same day that the Chinese government and the Japanese government plan to reach an agreement in June, which will be implemented soon thereafter, to make the two countries’ currencies directly exchangeable. This will be the first time the Chinese yuan (RMB) will be directly exchangeable with another foreign currency without a “middleman” currency such as the U.S. Dollar. The agreement originated at the leadership summit the two countries had last December. Actual negotiations started this February. The Tokyo and the Shanghai foreign exchange markets are preparing for the operational mechanism, which has a delivery target of this June. This move is widely considered as a symbolic action for the Chinese yuan to “de-link” from the U.S Dollar. Currently Great Britain and Singapore are both in talks with the Chinese government to cut similar deals.
Source: BBC Chinese, May 26, 2012