China's first cross-border yaun transactions represent a significant step away from dollar dependency.
From Denis McMahon, Dow Jones Newswires:
SHANGHAI (Dow Jones)--China formally allowed the use of the yuan to settle cross-border trade Monday, and three Shanghai-based firms completed transactions using the currency.
While Hong Kong residents have been allowed to move yuan between their local bank accounts and mainland China on a limited basis for years, this is the first time Beijing has extended yuan settlement to include commercial transactions.
It is also an important first step toward promoting the yuan as a regional currency and reducing China's dependence on the U.S. dollar.
