Policy for Settlement of HK-mainland Trade in Yuan Coming Soon: Central Bank Governor

China is expected to soon issue a policy facilitating settlement in yuan for trade between Hong Kong and the mainland, the country's central bank governor Zhou Xiaochuan said here Friday.

Zhou Xiaochuan (R), governor of the People's Bank of China, answers a question during a press conference on dealing with the global financial crisis and maintaining steady and relatively rapid economic growth held by the Second Session of the 11th NPC at the Great Hall of the People in Beijing, March 6, 2009. Zhang Ping, minister in charge of the National Development and Reform Commission of China, and Chinese Finance Minister Xie Xuren also attended the press conference. (Xinhua)

"It won't be long before the policy can be made public," Zhou, head of the People's Bank of China, told a press conference here on the sideline of the parliament's annual session.

Zhou said there are no major technical difficulties in realizing the settlement of HK-mainland trade in yuan because banks are already operating with multiple currencies, while payment systems accommodating mainland tourists using yuan had been operating on a tentative base since 2003.

What remains to be done is only a few finetunes on the transaction systems of banks and regulating policies, said Zhou.

China's State Council, or the Cabinet, announced last December to settle trade in yuan between Guangdong, the Yangtze River

Delta and Hong Kong and Macao, and that between Guangxi, Yunnan and members of the Association of Southeast Asian Nations on a trial basis.

Trade between Hong Kong and the mainland reached 197.25 billion U.S. dollars last year, an increase of 18.7 percent from the previous year. The biggest amount of trade is reported between Hong Kong and mainland provinces of Guangdong, Jiangsu, Shanghai, Zhejiang and Beijing Municipality.

Press conference on dealing with the global financial crisis and maintaining steady and relatively rapid economic growth is held by the Second Session of the 11th NPC at the Great Hall of the People in Beijing March 6, 2009. (Xinhua)

Chinese Premier Wen Jiabao said Thursday in his government work report the mainland would accelerate the trial operation of settling trade in yuan with Hong Kong and Macao this year.

(Source: Xinhua)

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