2012.05.04 03:46:20 China's Yuan Needs Bigger Role In Commodities Trading - Report

BEIJING (Dow Jones)--The Chinese yuan must take a greater role in commodities trading if it is to become an international currency, a commentary in the Financial News said Friday. Commodities pricing and settlement is often the "starting point" for a currency to internationalize, the central bank-backed newspaper said in its website edition. "The link between oil and the dollar gives the U.S. significant pricing power," the commentary said. "China must accelerate the establishment of system under which oil is denominated in yuan." This will be a new path in international energy trade and will also be a key step in the internationalization of the currency," it said. The commentary also called for the Chinese government to work with countries in Africa, the Middle East, and Southeast Asia to price commodities contracts, including those for energy, minerals and grains, in yuan. Newspaper website: http://www.financialnews.com.cn -By Beijing Bureau, Dow Jones Newswires; 86 10 84007702; paul.mozur@dowjones.com (END) Dow Jones Newswires May 03, 2012 21:46 ET (01:46 GMT)