The People’s Bank of China plans to expand cross-border yuan trade settlements internationally and will use its trial in Hong Kong as a “platform,” said Fan Linchun, an official at the central bank.
Cross-border yuan settlements have already spread to countries outside of Asia including France, Luxembourg and South Africa, Fan said today at a forum in Hong Kong. Their market share remains “insignificant,” he said.
Cross-border trade settlements in the southern Chinese province of Guangdong totaled 135 billion yuan ($20 billion) in the past 16 months, Fan added.
China will soon enable a further 5,000 companies in Guangdong to use yuan for trade with Hong Kong, Radio Television Hong Kong reported yesterday, citing Fan.
Fan told the broadcaster he expects the yuan quota for Hong Kong next year to exceed the current 8 billion yuan. Fan is deputy head of the yuan-trade settlement office at the central bank’s Guangzhou branch in Guangdong, according to the report.