Bank of China allows accelerating the transition to convertibility of the yuan

The pace of transition to convertibility of the yuan may accelerate, as rising global demand for trading in Chinese currency, spokesman of the People's Bank of China. "If you look at the history and progress of the international use of the yuan, you'll see that sometimes the demand is growing very quickly," - said Shin Yutszin, Deputy Director of Monetary Department of the Central Bank. "If there is a demand for change in the market ... can happen faster than we thought before, "- he said, speaking at an economic conference in Hong Kong. China is seeking to expand the use of the yuan overseas as intended in the future make it an international reserve currency alongside the dollar, analysts say. After Beijing announced Hong Kong offshore center for trade in yuan, there comes a huge amount of corporate bonds, denominated in yuan, banks are creating new structured products and, increasingly, Chinese importers to trade in yuan. Deputy Head of the Hong Kong Monetary Authority, Peter Pan said that the growth potential for Foreign direct investment (FDI), entering China through the sale of bonds denominated in Renminbi, is huge and its speed can be doubled compared to last year. "Investing in Hong Kong - 46 billion dollars in 2009 - almost 50% of the total FDI in mainland China. FDI into mainland China via Hong Kong bonds denominated in yuan last year amounted to less than 2 billion yuan (304.3 million dollars), or 1,5% of total FDI, so the growth potential is really enormous, "- he said. Source: Banki.ru