Economy

Xinjiang to boost RMB settlement in cross-border trade

(Xinhua)
Updated: 2011-05-11 14:40

URUMQI -- China's northwestern Xinjiang Uygur autonomous region aims to have five percent of its foreign trade settled in yuan, China's official currency, in 2011 as the country continues to push for the use of the yuan in international trade.

Related readings:  PBOC to expand cross-border RMB settlement plan  Banks close to agreement on local currency settlement  Yuan settlement to be expanded in mainland

Officials with the region's financial department said on Tuesday that yuan-settled cross-border trade has exceeded 12.2 billion yuan ($1.88 billion) since last October, when the region started to allow the Chinese currency to be used as an alternative to the US dollar in international trade.

Fifteen banks in Xinjiang are certified to handle cross-border yuan services, while 20 foreign banks and institutes offer other yuan-related services, officials said.

Cross-border yuan settlement refers to the use of the yuan in international trade and investment deals.

Xinjiang is located on China's border near central and western Asia. The vast region borders eight countries, including Russia, Kazakhstan, Kyrgyzstan, and Pakistan. The central government has announced a series of favorable policies to help Xinjiang become a key region for western trade.