Yuan to be freely convertible soon in Shanghai FTZ

A senior central bank official said on Thursday he expected the Chinese currency to be freely convertible soon in the China (Shanghai) Pilot Free Trade Zone, as a pilot program is set to open the country's capital account.

"The Shanghai free trade zone is ready to be the first area in China to allow free use of the yuan and have an open capital account," said Zhang Xin, deputy director at the Shanghai branch of the People's Bank of China.

Policies and market mechanisms are being prepared to support the reform in Shanghai, he said at a financial industry seminar being held in the city.