China is keen for the yuan to become more widely used in global trade and investment. Take up accelerates when the renminbi is seen as a currency that foreigners can trust, first as a medium of exchange and secondly as a store of value.
It does not take advanced technical analysis to see the weakness of the US dollar. The fall from US$1.04 ($1.41) to US$0.93 over the past few months is noticed by everyone involved in international trade settled in US dollars.
Less noticed, however, is the behaviour of the Chinese yuan which has strengthened — moving from 7.1 to 6.7 to the US dollar over the same period.
