Mumbai (The Times of India): China appears to be paving the way for developing the yuan as an international currency by creating markets for direct currency trade with yuan. The yuan, which bypassed the dollar to trade directly with the euro, Hong Kong dollar and Malaysian ringgit, has started direct trade with the Russian rouble since December and many feel that a similar offer to trade directly with the rupee may be on the cards.“I would not be surprised if China makes an offer for a yuan-rupee market. The Chinese have started a market between Russian rouble and yuan without going into the dollar. In a way, it is natural considering the trade between the two,” said A V Rajwade a forex consultant who was part of the committee that advised the government on rupee convertibility . According to a report by Moody’s Analytics released on Wednesday: “Either proactively or reluctantly, China appears to be gradually moving to allow greater international use of the yuan in trade and finance and some observers have even nicknamed China’s currency the ‘redback’ , implying that it might become an international currency comparable to the US greenback. Read more at The Times of India…..
From Sanjeev Kulkarni