The internationalization of the yuan represents the next structural turning point in the global financial landscape. A turning point that also has implications for the treasuries of companies that trade with China. The governor of the Chinese central bank, who has clear ideas on this matter, has a plan to gradually introduce convertibility, but this rests on the growing use of the Chinese currency outside national borders.
Along this road, the authorities have already taken some timid steps, with bilateral agreements with groups of countries to regulate exchanges in their respective currencies, without going through unnecessary (and potentially costly) triangulations with the dollar, which has so far been the main international billing currency. Compared to China's 'river' of exchanges, those settled in yuan are a 'stream', but, said Hong Kong representative to America Donald Tong, China aims to turn the stream into a respectable one. Hong Kong is more familiar with international finance than Beijing, but the two financial centers are working together to establish other financial centers where the yuan can be traded. In addition to the already established Hong Kong and Singapore, there are ongoing contacts in this regard with countries in Latin America, the Middle East, as well as Great Britain and Australia.
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