* Deutsche Bank Makes Cross-Border Yuan Payment Under New China Central Bank Scheme

WSJ: “A pilot scheme intended to make it easier for companies to settle trade in the Chinese yuan officially kicked off Friday, with Deutsche Bank AG completing the first cross-border yuan payment transaction under the program.

The new program, launched by the Shanghai branch of the People’s Bank of China on a trial basis, aims to streamline the process for settling cross-border trade in the yuan by exempting qualified companies from submitting original trade documentation to support each payment. Information on the program has recently been circulated among banks in Shanghai, bankers said, though the central bank hasn’t yet made a public announcement on the initiative.

Deutsche Bank, one of the largest providers of liquidity to currency markets, executed the transaction on behalf of the China subsidiary of Huettenes-Albertus, a German manufacturer of foundry chemical products, under which the company paid a foreign supplier in yuan.

“In the past, settling trade in yuan has been both time-consuming and labor intensive,” said Beng-Hong Lee, Deutsche Bank’s head of foreign-exchange trading in China. “This is a big leap forward.”

The new scheme currently is limited to companies and banks operating in Shanghai. It follows the PBOC’s move in March, when the central bank expanded the use of yuan in trade settlement to exporters and importers across the country.

As China pushes ahead with its drive to spread global use of its currency, many analysts expect the yuan to account for a bigger share of international trade settlement. Beijing started to allow cross-border trade to be invoiced and paid for in its currency about three years ago, and since then, yuan-settled trade has grown to about 10% of China’s total trade. Some analysts have predicted that figure to grow to 3.7 trillion yuan ($587 billion) this year, or 15% of China’s total trade.”

via Deutsche Bank Makes Cross-Border Yuan Payment Under New China Central Bank Scheme – WSJ.com.

Another step in freeing the world economy from US $ domination.

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