Cross-border yuan transactions as close to possible as ever

China is considering allowing companies to use its currency on overseas investments as a next step on the reform to facilitate cross-border yuan flow, Hu Xiaolian, deputy governor of the People's Bank of China, said Tuesday.

However, according to Liu Yu, official from the Institute of Finance and Banking under the Chinese Academy of Social Sciences (CASS), a bigger issue is whether countries will accept the yuan on transactions.

Hu also said that China will also launch a mini Qualified Foreign Institutional Investor (QFII) plan, in which it will allow offshore yuan deposits back into the mainland's capital market.

Source: Global Times