Timely move

The expansion of a pilot program aimed at settling cross-border trade deals using the yuan, and Saturday's announcement of a more flexible exchange rate regime, are early indications that efforts are underway to internationalize China's currency.

The move, if successful, will also see the renminbi effectively compete with the dollar for pre-eminent status in world trade. Six ministries issued a joint statement Tuesday saying the pilot project, introduced in July 2009, has been broadened to 20 provincial regions in order to better facilitate trade and investment.

In future, exporters settling their trade deals using the yuan will enjoy similar tax rebates accorded to dollar settlements, the government said.