Guo Shuqing, the chairman of state-controlled China Construction Bank (CCB), also said he is exploring the possibility of issuing loans to trading companies in yuan, allowing Chinese and foreign companies to settle their bills in yuan rather than in dollars.
Mr Guo said the issuing of yuan bonds in Hong Kong and Shanghai would help to develop the debt markets in China and promote the yuan as a major international currency.
It was the first time the head of a major Chinese bank has called for the wider use of the yuan, although a chorus of senior government officials have already voiced their concerns about the stability of the dollar and have said the yuan should be used more widely.
"I think the US government and the World Bank can consider the issuing of renminbi bonds," he said, asking for a "mutual cooperation" between the US and China to promote Chinese financial services.
With a $2 Trillion Dollar (likely to be revised upwards) Deficit.....if our obligations to China, a nation with a surplus, gets denominated in yuan.....we are setting ourselves up for an obligation we can NEVER pay back as the dollar devalues against the yuan.....anybody ever heard of Argentina???
Interest rates will explode and the dollar will implode..... Americans will not be able to afford to fill up their cars with gas.......maybe this helps clarify why the Chinese laughed at Timmy last week...