http://www.latimes.com/business/la-f...,1808437.story


"In a series of what might be called baby steps, Chinese officials recently have moved to globalize the yuan and promote its influence overseas, with Shanghai designated as command central.

Since last December, China has signed deals with six countries, including South Korea, Malaysia and most recently Argentina, for currency swaps that would inject Chinese money into foreign banking systems. That would allow foreign companies to pay for goods they import from China in yuan, bypassing the dollar -- the currency that dominates international trade and finance, including foreign exchange reserves.

Beijing is also taking initiatives to use the yuan, also known as the renminbi, to settle trade accounts between some Chinese provinces and neighboring states, starting with Hong Kong.


"The central bank has set promoting the renminbi for payment settlements as the main task for this year's work," said Shi Lei, an analyst in the global financial markets section at Bank of China in Beijing."

Just one more step on the road to devaluing the dollar.

jim