China Begins Using RMB to Settle Trade Accounts

This may be the start of something big. The Chinese government has allowed five major trade cities to begin using the RMB (Yuan) as trade currency with selected countries. This is a major development because, until now, all trade was settled in US Dollars. This move is intended to make the RMB an international currency to compete with the dollar.

Shanghai and four cities in the Pearl River Delta - Guangzhou, Shenzhen, Dongguan and Zhuhai have been designated as the RMB trade zones.

This could be nothing, or it could be the start of a decline in the prestige and value of the US dollar. I can't claim to understand all the implications or how this will impact our customers and business directly, but I do intend to study and learn about the situation. Here's a link to an article on this by China Daily:

http://www.chinadaily.com.cn/china/2009-04/09/content_7660017.htm