China says to let market decide future of yuan settlement

BEIJING, March 9 (Xinhua) -- China will let the market decide the future of yuan settlement in cross-border trade as it further removes obstacles at the administration level, a central bank vice governor said Tuesday.

Yi Gang, vice governor of the People's Bank of China and  also director of the State Administration of Foreign  Exchange, answers questions during a press conference on  foreign exchange control and foreign exchange reserve  held on the sidelines of the Third Session of the 11th  National People's Congress in Beijing, China, March 9,  2010. (Xinhua/Yuan Man)

"We support market rules," said Yi Gang, vice governor of the People's Bank of China, while answering questions concerning pilot yuan settlement in cross-border trade on the sidelines of the annual session of the National People's Congress (NPC),the country's supreme legislature.

"There used to be administrative obstacles, but now we are removing them and will let the market make its decision," said Yi, who is also director of the State Administration of Foreign Exchange, the country's foreign reserves regulator.

All parties involved in China's pilot yuan settlement in cross-border trade have showed enthusiasm over the trial programs, he said.