Asian traders lukewarm to renminbi despite US dollar-depeg

chinese yuan

Importers and exporters that trade with onshore Chinese companies are having second thoughts about using the renminbi to settle their trades in place of the US dollar. This is despite the fact the currency peg to the US dollar looks set to end now China's central bank is opting instead to reference the renminbi to a basket of currencies, a move expected to lead to greater two-way USD/RMB volatility.

At the weekend, the People's Bank of China replaced its de-facto peg to the US dollar by referenc