China to open up yuan cautiously and boost trade

Sunday, 30 Jan 2011

Reuters reported that China will carefully open up its yuan to more trading based on market needs and plans to double its level of imports in five years as the country liberalizes its economy, now the world's second largest.

Mr Chen Deming Commerce Minister said "Over the next year or for an even longer period, China will continue to stick to our mechanism of liberalizing the yuan according to market needs."

China has been gradually making its currency, the renminbi which means the people's money, more international with the nascent offshore yuan market in Hong Kong growing rapidly in less than a year since trade settlement and investment rules.

The yuan is expected to hit 6.3 per dollar by the end of 2011.

As China slowly strengthens its yuan and boosts domestic consumption, it will also import more goods, such as commodities and consumer products.(Sourced:reuters)