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It also said that members of the Association of Southeast Asian Nations could use yuan in their trade with China's southeastern provinces of Guangxi and Yunnan.
Starting on July 6th selected firms in five Chinese cities are now allowed to use yuan to settle transactions with businesses in Hong Kong, Macau and ASEAN countries.
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Weeks earlier China offered Argentina a currency-swap arrangement involving use of yuan worth $10 billion, and lent cash-strapped Jamaica $138m to enable it to stave off a debt default.
"This means it makes it harder to use the yuan as a policy tool," he added.
The four banks have been using the yuan reserves to lend huge sums, raising fears of another wave of nonperforming loans.
This was both insurance against another run on the rupiah and part of China's experiment with using the yuan as an international currency.
" when five internal organs are suffering from diseases, we can use 12 yuan-acupoints to treat.
Mr. Zhang said that could help to spread the use of the yuan abroad, a move that Beijing has been promoting.
(The Chinese government has allowed it to appreciate, in order to curb inflation at home and encourage the use of the yuan as a global currency).
The rapid growth in the use of the yuan outside China, whether for trade settlement or investment, has been from a minuscule base.
The fear is that, as international use of the yuan grows, China will start to provide pariah states with a means to evade Western financial sanctions, thus subverting the diplomatic order as well as the financial one.In fact the evidence suggests China's goals are less sinister.
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