All nations allowed for RMB use in cross-border trade

Overseas regions for implementing the pilot program of RMB use in cross-border trade will be expanded to include all nations and regions and not limited to <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Hong Kong and ASEAN (Association of Southeast Asian Nations) members anymore.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Meanwhile, all enterprises eligible for foreign trade in the five pilot cities would be allowed to use the yuan in cross-border transactions, according to a meeting held in Guangdong province on Sunday.

Five major Chinese cities -- Shanghai, Guangzhou, Shenzhen, Zhuhai and Dongguan -- were chosen to participate in a pilot program for cross-border RMB trade settlement starting in July 2009. Except for Shanghai, the other four cities are from Guangdong province.

However, only 500 businesses were allowed to use the yuan in cross-border transactions with Hong Kong and ASEAN since the pilot program kicked off, which could not satisfy the actual demands.

Guangdong province has proposed another 3,000 businesses for participating in the pilot program. They would be the second batch of businesses to use the yuan in cross-border transactions after the government approval. A third batch of businesses was also chosen, and the selection process would try to work with the businesses.

In addition, the provincial government will promote banks and businesses to use the yuan in cross-border transactions and create conditions for new regions to participate in the program.

According to statistics, foreign trade volume in Guangdong province accounts for 25 percent in China.