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Chinese RMB Becoming Hard Currency?

Chinese currency is quickly being adopted as settlement currency, claimed International Herald Leader under Xinhua on February 16, 2009. Since Dec 2008, China has entered into agreements with eight of its neighboring countries including Vietnam, Myanmar, Russia, Mongolia and South Korea to use Chinese RMB as settlement currency. On Feb 8, 209, China entered into a currency exchange agreement with Indonesia worth 80 billion yuan which allows Indonesians to borrow RMB at banks in Indonesia. China views the international financial crisis an opportunity to “internationalize” its currency to make further inroads into the international economies.

Source: Xinhua, February 16, 2009