Morgan Stanley, Citi vying to clear yuan trades in US: executive

(Oct 20): Morgan Stanley and Citigroup Inc are among those vying to be the designated US bank clearing yuan trades in the United States alongside Bank of China (BoC), China's fourth-biggest bank by assets, a senior BoC executive said on Wednesday.

Appointing banks to clear yuan trades is part of China's drive to encourage worldwide use of the currency, also known as the renminbi, which it hopes would some day supplement or rival the dollar as a global reserve currency.

Unlike other countries where China is also trying to expand the yuan's reach, the United States will have two banks to clear renminbi trades, Xu Chen, president and chief executive officer of BoC, said in New York.

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