The Coming Flood of Yuan and Chinese Gold Demand

"The Internationalization of the Yuan - Progress report

The Chinese government has allowed the Bank of China Ltd's to allow trading in Yuan for the first time in the U.S. Individuals can convert up to $4,000 a day without limit for now, on the amount of money businesses can convert, so long as they're engaged in international trading, the report said. We at the Gold Forecaster have been following the steady progress of the internationalization of the Yuan since it began. The goal that seems likely to be reached sooner rather than later will be for the Yuan to be a competing global reserve currency. Effective immediately, Bank of China's U.S. individual customers can now open a Yuan denominated savings account with a $500 equivalent minimum balance. The bank also offers certificates of deposit in 6-month and 1-year terms with a minimum of $1,000 equivalent. Now watch the rush. We don't believe that those who do it hoping to experience an appreciation of the Yuan will see that. But such investor objectives will create a huge demand for the Yuan.

Account Opening procedures

For interested subscribers, the account opening procedures are simple-- there is an application form, a W-9 tax form, and a signature card. Applicants are also required to provide a government-issued ID and one other form of identification such as a credit card, employee ID card, insurance card, etc. You do have to show up in person. Businesses can also open Yuan accounts with a $5,000 equivalent minimum and requisite entity paperwork like Articles of Organization, etc. At this time, Yuan cash cannot be withdrawn from the account. The bank does provide currency exchange services between dollars and Yuan at its Chinatown branch in New York; current limits are up to $4,000 per day, and $20,000 per year.

The Yuan replacing the U.S. dollar

China is doing this as part of a long-term plan to make the Yuan become a fully-convertible competing global reserve currency. Many sovereign nations are holding Yuan in reserve instead of just dollars, and Chinese cross border settlement is now frequently being transacted in Yuan instead of dollars because of new clearing and settlement platforms that have been established in Hong Kong. After Yuan exchanges are established in the U.S., Europe will be next. Then as we forecast, China will price its goods in the Yuan and then pay in Yuan..."

at  http://www.marketoracle.co.uk/Article25580.html