ID :
209270
Sun, 09/25/2011 - 13:08
Auther :
Shortlink :
https://oananews.org//node/209270
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Internationalization of Chinese yuan depends on demand in market
By Kim Young-gyo
HONG KONG (Yonhap) - The internationalization of the Chinese currency depends on demand in the market, China's central bank governor said Sunday, indicating the country will gradually push for a broader use of the yuan.
The world's No. 2 economy currently does not have full capital account convertibility and maintains regulatory control that limits the trading of its currency at market rates. Such measures have resulted in the currency lacking liquidity, the most important quality necessary for a currency to be recognized as a medium of exchange around the world.
"The yuan's development as the world's major reserve currency depends primarily on the attitude of market participants toward the yuan, rather than people's wishful thinking," state-level news agency China News Service quoted China's Central Bank Governor Zhou Xiaochuan as saying.
"On the basis of this requirement, China will continue to push forward reform and opening-up, and maintain stable and rapid economic growth, to encourage more market participants to use the yuan," the governor of the People's Bank of China said.
Zhou was in Washington this week to attend the meeting of the International Monetary and Financial Committee (IMFC), the steering body of the International Monetary Fund (IMF).
Regarding the issue of adding the Chinese currency to the Special Drawing Rights (SDRs) basket, the governor said that he respects any decision made by the markets.
"The People's Bank of China is now focusing on how to deal with the financial crisis and to promote further opening of domestic financial markets," he said.
French President Nicolas Sarkozy, who is serving as chairman of the Group of 20 major world economies, said last week that the yuan should be included in the IMF's SDRs -- a unit derived from the value of the U.S. dollar, yen, pound and euro.
HONG KONG (Yonhap) - The internationalization of the Chinese currency depends on demand in the market, China's central bank governor said Sunday, indicating the country will gradually push for a broader use of the yuan.
The world's No. 2 economy currently does not have full capital account convertibility and maintains regulatory control that limits the trading of its currency at market rates. Such measures have resulted in the currency lacking liquidity, the most important quality necessary for a currency to be recognized as a medium of exchange around the world.
"The yuan's development as the world's major reserve currency depends primarily on the attitude of market participants toward the yuan, rather than people's wishful thinking," state-level news agency China News Service quoted China's Central Bank Governor Zhou Xiaochuan as saying.
"On the basis of this requirement, China will continue to push forward reform and opening-up, and maintain stable and rapid economic growth, to encourage more market participants to use the yuan," the governor of the People's Bank of China said.
Zhou was in Washington this week to attend the meeting of the International Monetary and Financial Committee (IMFC), the steering body of the International Monetary Fund (IMF).
Regarding the issue of adding the Chinese currency to the Special Drawing Rights (SDRs) basket, the governor said that he respects any decision made by the markets.
"The People's Bank of China is now focusing on how to deal with the financial crisis and to promote further opening of domestic financial markets," he said.
French President Nicolas Sarkozy, who is serving as chairman of the Group of 20 major world economies, said last week that the yuan should be included in the IMF's SDRs -- a unit derived from the value of the U.S. dollar, yen, pound and euro.
