china-ratchets-up-fx-pressure

China ratchets up FX pressure

China allows renminbi settlement for cross-border trade ahead of the G8 summit.

China has been supporting rhetoric with action ahead of this week's G8 summit in Italy, as it aims to promote the use of its currency in international trade and finance, and reduce its reliance on a volatile US dollar.

Last week, China said it would let its importers and exporters use the renminbi to settle cross-border trade. Until now, companies have had to convert renminbi into dollars or other currencies to settle international transactions.

The People's Bank of China PBoC announced on its website that it would encourage banks to offer renminbi settlement services from July 2. Approved companies will be able to settle and invoice transactions through financial institutions in...

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