China to promote freer yuan trades

Beijing will allow some trade with neighbouring countries to be settled in yuan, the Chinese currency, rather than in the dollar or the euro.

The move to liberalise the convertibility of the Chinese currency was announced last week as part of a larger package of measures designed to help exporters hit by the global downturn.

Currently, most of China's foreign trade is settled in US dollars or the euro, leaving exporters vulnerable to exchange-rate fluctuations.

Officials have declined to say whe