China may allow domestic trading companies to buy and sell goods internationally with renminbi, a step that would bring China closer to having a fully convertible currency, the Wall Street Journal reported. The governor of China’s central bank, Zhou Xiaochuan, told reporters at the National People’s Congress on Friday that four commercial banks could begin settling international merchandise-trade deals in renminbi as soon as this month. "It won’t be long before the policy could be made public," Zhou said. The adjustment to the rules would not have a direct impact on the Chinese currency’s exchange rate. However, the new rules would make trade easier and cheaper for Chinese companies as costs and currency-exchange-rate risks would be shifted to their foreign trading partners, the paper said.
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