CCP Chair: China To Loosen Grip On Yuan

China is seeking to make the yuan more widely used internationally, saidChina Construction Bank(CCB) ChairmanGuo Shuqing,The Wall Street Journalreports. The yuan may become convertible under the capital account in the next five years, with cross-border transactions being normal unlike other countries, he added.

Overseas investors need state approval to exchange foreign currencies for yuan to make investments in China, while domestic companies and individuals also require approval to convert yuan for major projects abroad. China has entered currency swap agreements with several nations and launched trials for yuan trade settlement with a number of mainly Southeast Asian countries.

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