The wider use of renminbi in the region or beyond will need to be a gradual process, Monetary Authority Chief Executive Joseph Yam says, adding Hong Kong provides a useful testing ground for cautiously implementing liberalisation measures.

In his weekly Viewpoint column published on the authority's website today Mr Yam said the Mainland continues to rise rapidly as an important force in global trade and production and the renminbi is gaining flexibility within a framework established in July 2005.

"There are also indications of an increasing use of the renminbi outside Mainland China, although this is from a low base and so far pretty much limited to regions that are closely linked to the Mainland," he said.