China first authorized the sale of bonds denominated in yuan in 2007. They are called “Dim Sum” bonds after the bite-sized delicacies in Chinese cuisine. But they have become a huge boost to the popularity of the currency. The Society for Worldwide Interbank Financial Telecommunication says the renminbi is now among the top ten most-used currencies for global trade payments, overtaking the Swiss Franc to occupy position seven in February.

The fate of the Goethe Bond will be closely watched in Frankfurt

Germany signed agreements with Chinese financial authorities in March that permit the sale of Dim Sum bonds at the Frankfurt Stock Exchange. The deal also means Frankfurt will become the first offshore “clearing center” for exchanging euros for renminbi, which are needed for buying Dim Sum bonds.

http://www.dw.de/frankfurt-issues-first-bond-backed-by-chinese-curr...