China's central bank says it will allow Chinese companies to make overseas investments in yuan. It's a key step in expanding the currency's role in the global economy.

The People's Bank of China said on its website that domestic firms would be allowed to use yuan internationally, for launching new business as well as for mergers and acquisitions.

Economists say the scope of the programme, described as a pilot, will be limited. But the enthusiasm of both Chinese investors and foreign targets for the currency, should not be underestimated.