Since the beginning of 21st Century, the father of EURO, Mr. Robert A. Mundell, predicted that the EURO, USD and ACU (“Asia Currency Unit”) will divide the world into three main areas in about 10 years. Now, the time line is coming. China sent out a signal to the world to remind everybody what he said had been correct.
The Chinese Government publicized and implemented a new rule about RMB use in cross-border transactions directly with 10 countries in Asia, HK Special Administration Region and Macao since July 1, 2009.
For example, firms in Hong Kong will be allowed to use the yuan to settle trades with their counterparts in five major mainland cities as soon as this month. Signed by the People’s Bank of China and the Hong Kong Monetary Authority on Monday, the pact with Hong Kong to use the yuan as a settlement currency for trade is the latest step toward China’s long-term aim of internationalizing the yuan. At present, the yuan is not fully convertible on the world market.