China loosens corporate renminbi rules

China has allowed domestic companies to move renminbi offshore for use in launching overseas businesses and funding acquisitions, the Financial Times reported. It is the latest in a series of steps by which China has increased the currency’s global presence, and follows on from allowing companies since July 2009 to use renminbi for international trade transactions. Companies settled US$51 billion in trade between June and November. The People’s Bank of China (PBoC) has not indicated a limit for the size of transactions companies are now permitted to make, but firms will be required to apply for government approval to send renminbi offshore. The PBoC allowed the trading reference point to strengthen for the first time above RMB6.6 to the dollar on Thursday.