Macau to act as a currency hub between China and Portuguese language countries

Thursday, January 19, 2012

At least I think that's what this means. The sentence in bold is unclear to me - does it mean that a country that buys X amount of Chinese yuan is now able to use that X amount of money to buy bonds and whatnot?

In any case, the fact that Macau is to be China's gateway to the Lusophone world in yet another aspect is the most interesting part for me.

The news is coming soon, says the Monetary Authority of Macau. The Chinese central bank has indicated that it wants to use the local financial sector for conversion into yuan of accounts that Portuguese language countries have.

In November, the People's Bank of China reported that it intended to have Macau as a platform to standardize accounting trade and investment between China and Portuguese language countries.

Beijing currently has established 14 so-called swap agreements for the yuan, with Hong Kong and Macau as the first signatories, as well as other nations in Southwest Asia, Iceland, Argentina and Belarus.

The understandings permit banks and investment agencies of signatory countries and regions to work with the volume of trade in yuan invested in the inter-bank continental market (possam realizar com o volume de trocas em yuan investimento no mercado inter-bancário do Continente). There are currently ten types of securities open to investment from outside, including treasury bonds and others issued by Chinese state banks.

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