Those thinking the Yuan will quickly go soaring to the moon or that China is about to float the Yuan will offer as evidence the New York Times article Chinese Bank Launches Yuan Service in New York.
A state-owned Chinese bank says its New York City branch has begun offering accounts denominated in China's tightly controlled yuan in a new move to expand the currency's global reach.
Bank of China's announcement comes ahead of Chinese President Hu Jintao's visit to Washington next week. The White House says President Barack Obama will press U.S. complaints about China's currency controls that critics say keep the yuan undervalued and swell its multibillion-dollar trade surplus.
In a statement on its website, the bank said account holders can exchange up to the yuan equivalent of $4,000 per day, with a limit of $20,000 per year, while the limits are half those levels for non-account customers.
"They are trying to expand the scope of people who can hold renminbi and that increases demand," said Daniel Hui, a foreign exchange strategist for HSBC Corp. in Hong Kong.