Foreign companies will be issued yuan-denominated bonds and and the Chinese government is relaxing its currency rules so that the yuan can be more accessible to foreign financial institutions. As China continues to relax restrictions on its currency, China’s trading partners will be more apt to adopt the yuan to conduct business transactions. [Chinese Yuan ETFs: Waiting on Gains.]
Although the status of currencies such as the U.S. dollar, euro and yen is still intact, with the Chinese yuan gaining prominence, China will become a greater international financial center and its companies will gain easy access to international capital.
For more information on the Chinese yuan, visit our Chinese yuan category.
Max Chen contributed to this article.