Offshore yuan could be used to trade gold in Shanghai’s free trade zone if a Shanghai Gold Exchange proposal gets approval, Bloomberg reported Wednesday, citing a draft plan.
The exchange wants to let holders of offshore yuan accounts trade the three contracts it will offer, including bullion of 99.99 percent purity, the report said.
If endorsed, the gold contracts would give holders of yuan deposits more investment options, it said.
Liberalizing the sector could also help the exchange attract foreign institutional and private investors.
Gold imports in China are controlled through a central bank quota system.
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