The People’s Bank of China recently published a “Notice on Issues of Three Types of Organizations, Including Offshore Renminbi’s Clearing Houses, Investing the Renminbi in Banks’ Bond Markets.” China Review News quoted an article by the Shanghai Securities News, commenting that it will improve the Renminbi’s circulation overseas to create the condition for it to “come back” after “pushing it out,” moving forward the goal of making the Renminbi a major foreign exchange currency.
The article stated that there are 3 ways to push the Renminbi to “go abroad.” They are: currency exchange between China and other countries, using the Renminbi for cross-border trade settlement, and Hong Kong’s Renminbi’s offshore market. The article then argued for establishing a Renminbi onshore market in Shanghai to provide a better condition for the Renminbi to circulate back.
Source: China Review News, August 24, 2010
http://gb.chinareviewnews.com/doc/1014/2/4/1/101424105.html?coluid=53&kindid=0&docid=101424105&mdate=0824074956