The move is one of several indications that internationalisation of the Chinese currency is picking up pace again
HSBC said on Wednesday that it had helped a Chinese national remit yuan from Australia back to mainland China, the first international bank to do so since a rule change in January.
The transaction is an indication that the Chinese authorities have, albeit cautiously, expanded their drive to internationalise the yuan.
Previously, Chinese people living overseas could only send money back to China if it were denominated in other currencies, but this was changed according to a circular from the People’s Bank of China, China’s central bank, published on 5 January.
In 2016, China was the second largest remittance recipient after India, receiving US$61 billion, according to the most recently available data from the World Bank.
“By opening up cross-border RMB transactions to individuals, China is adding new impetus to the international use of its currency,” said Helen Wong, HSBC’s Greater China chief executive in a statement, using an abbreviation for the renminbi, another name for the yuan.
In a separate move, the PBOC on Tuesday said in a statement on its website that it had appointed JP Morgan as a yuan clearing bank in the United States, the first non-Chinese bank to have such a role globally.
- RMB bonds to be included in the Bloomberg-Barclays Global Composite Index
- China cuts banks’ reserve ratios by 1% as economy slows
- PBOC renews currency backup from UK and Japan to defend yuan
- China signals tougher measures to shore up yuan
- China to sell new yuan bills in Hong Kong – a new tool to control the currency now at a 10-year low
- RMB, Philippine peso trading platform formally launched
- China-Japan sign three-year FX swap deal to strengthen financial stability, business activity
- China cuts some banks’ reserve requirements to spur growth
- Bank of China cite benefits of direct RMB-Peso conversion
- Yuan up as China restarts ‘counter-cyclical factor’