CRI听力：China Promotes Use of Rmb in Cross-Border Trade

Anchor: China is trying new ways to reduce potential losses, caused by a weak US dollar.

The government has decided to use the Yuan, for cross-border trade settlements, in five mainland cities and Hong Kong.

Damin has more.

Reporter:
When financial and credit troubles struck the Dollar's value, China decided that it was safer to settle bilateral trade accounts in Yuan.

That's why the state council has decided to promote the use of the Yuan, which had already been practiced at several inland border cities, including Shanghai and Shenzhen.

Mei Xinyu is a researcher at a trade and economy research institute under the Commerce Ministry.

"This is an expansion of the use of Yuan, from a few border towns to the major financial and trade centers. As long as our trade partners agree with us on that, we'll see a substantial proportion of bilateral trade accounts being settled in our Renminbi soon."

China has been pushing for reasonable alternatives to the Dollar as the sole international reserve currency, in more ways than one.

President Hu Jintao has stressed the need for reforms to the current international monetary system.

And in the last four months, China has signed new currency swap agreements with six countries and regions, raising the amount of money involved to 650 billion Yuan.

Renmin University Professor Zhao Xijun says these moves clearly showed Beijing's intention to internationalize the Yuan.

But he says this is only the first step.

"The latest pilot program will possibly bring an increase of the use of the Yuan in international trade, but it is only a trial. To fully establish the Yuan as an international currency, we still have a long way ahead."

A Foreign Ministry Spokeswoman says signing currency swap agreements with Southeastern Asian nations also show's China's support for and confidence in the region's economy.

She spoke as Premier We Jiabao prepares for the regional economic summit in Thailand.

Damin, CRI news.