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China to allow foreign direct investment in yuan
China has established a rule to allow foreign direct investment (FDI) in the yuan legally obtained overseas, a step toward the government's goal of internationalizing its currency. The move is aimed at promoting trade and investment by expanding cross-border use of the yuan and supporting the development of the yuan market in Hong Kong, the People's Bank of China (PBOC), or the central bank, said in a statement on its website. It said qualified foreign investors can directly apply for yuan settlements through the program with banks, making procedures for related financial services easier.The Ministry of Commerce (MOC) also issued a statement on its website, giving detailed definitions and application procedures for FDI in yuan.
