China to allow free yuan exchange in Shanghai zone: Draft plan
SHANGHAI (AFP) - China will allow unfettered exchange of its yuan currency in its first free trade zone, a draft plan seen by AFP on Thursday showed, in a push to reform the world's second largest economy.
The plan showed the free trade zone (FTZ) in Shanghai goes beyond greater liberalisation of trade to take in investment and financial services - including free convertibility of currency.
"Under the pre-condition that risk can be controlled, in the zone convertibility of the renminbi on the capital account will be conducted, the first to carry out and test (it)," the plan said.
It does not explicitly state that the exchange rate will be purely market set.