Yuan settlement to start at adjacent regions

Renminbi has started its pace toward the world since 2009, during the process questions being aroused that how far it is from to become the so called world currency, and what are the steps it has to cover?<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Firstly speaking, the yuan is still at its primitive stage for cross-border settlement; this idea is convinced however from two aspects. In the first place, any currency is obliged to undergo three stages from surrounding countries to regionalization till globalization. In fact, yuan’s circulation is quite limited presently amid <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Hong Kong and South-east Asian countries other than the rest of the world.  Next, at least three functions are needed in the position of world currency to play the role of settlement, investment and reserved money.

So renminbi is just at its starting stage, and will have a long way to go when compared to world dominant currencies, such as US dollar, Japanese yen or euro. In current situation, there are three ways for renminbi to hold world financial position initially, and then to promote its regionalization, or to perfect domestic financial market in support of yuan’s international settlement.