Capital account yuan trial executed in Shanghai

<?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Shanghai has recently worked out the draft program encouraging local bankers and enterprises to participate in partial yuan settlement trial under capital account. All of the qualified banks and producers, when in good preparation and away from risks, can be sharing businesses of cross-border financing, direct overseas investment and other businesses under capital account in relation to foreign trade. The projects in approval will be supported in special funds from the local administrator. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

The program is also managed to boost yuan settlement in business of international bidding, including yuan clearing in import goods under government procurement. Researches are said to be made on the field of utilizing of foreign funds, import of bulk commodities and foreign aid by yuan settlement.

All this measure is meant to promote yuan to “go out” with forceful governmental support, in shaking off restrains of single business mode for the purpose of   Renminbi’s globalization, as a senior central bank official says.

Till August 16, Shanghai has added yuan settlement up to 26.6 billion yuan, including 20.0 billion yuan for import business, 1.5 billion by export, 14 billion for trade in service and 3.7 billion yuan effected under capital account.