China approved the use of the renminbi for trade settlement in Hong Kong in the latest step toward internationalizing the Chinese currency, the Wall Street Journal reported. The deal, signed Monday by the People’s Bank of China (PBoC) and the Hong Kong Monetary Authority, will allow Hong Kong firms to use the Chinese currency to settle trades with Chinese firms in the cities of Shenzhen, Guangzhou, Shanghai, Dongguan and Zhuhai. Analysts described the move as a significant milestone, but said that the immediate impact of the deal would be marginal. Speaking in Hong Kong, PBoC governor Zhou Xiaochuan also said China’s economic growth could meet or surpass the government’s growth target of 8% this year.
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