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US dollar endangered: China begins yuan pilot progam

US dollar endangered: China begins yuan pilot progam article image

Three Shanghai-based businesses have been chosen to pioneer China's yuan pilot program, which aims to boost the use of Chinese currency in foreign trade. Companies in Hong Kong and Indonesia will be the first markets outside of mainland China to trade with the yuan, after signing contracts valued at more than US$2 million. "The yuan-settlement trial in Shanghai has great significance for the city's plan to become an international financial centre," said Han Zheng, Mayor of Shanghai. The pilot program has been designed to shield Chinese trade from fluctuations in the US dollar and the euro, which has caused trouble for China in the last 12 months. "The yuan is stable compared with other major currencies and it will help companies control exchange-rate risks," said deputy central bank governor Su Ning.

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