China to Allow use of Yuan by Foreign Investors

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Recent announcements by China have revealed their plans to allow the use of the Yuan by foreign investors, something they hope will boost investment.

The plans will see the Chinese currency in use by foreign investors within the global market. The plans are intended to help strengthen the Chinese Yuan in light of recent global economical problems.

With a number of economies struggling across the world, China has decided to try to establish the Yuan as a global currency, hoping to distance itself from its reliance on the US dollar.

The dollar and US economy has experienced a number of declines and set-backs recently, leading to problems for other economies linked to the global giant. China, as one of these countries, has sought to counteract this by allowing the use of their currency in foreign direct investment.

Guidelines which have been proposed for the change would allow the Yuan currency to be used through cross border trade as well as in the sales of shares and via offshore bonds.

The Yuan currency is usually strictly controlled by China, something which has attracted criticism from nations such as the United States. These areas claimed that China deliberately and artificially keep the value of the Yuan low in order to give native Chinese exporters an advantage over other traders.

The guidelines, which have been proposed by the Commerce Ministry, are to receive public feedback at the end of this month.

The news itself could mean a change in the manner and amount of Chinese investment, influencing their economy as a whole.

Transfer Money to China

If you are looking to invest in China, think carefully about how you will be transferring money to China. Foreign currency exchange rates quoted by banks are almost always worse than the exchange rates available through specialist currency dealers.

So if you are sending money to China – which you will inevitably have to do if you are looking to make a property investment, be sure to compare the market before you buy your overseas currency.

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