|
|
NPC & CPPCC Annual Sessions > Biz & Economy > News
|
China urged to make yuan internationalBy (Xinhua)
Updated: 2009-03-08 11:19
"A significant inspiration to draw from the global financial crisis is that we must play an active role in the reconstruction of the international financial order," said Peter Kwong Ching Woo, chairman of the Hong Kong-based Wharf (Holdings) Ltd. The key to financial reform is to make the yuan an international currency, said Woo in a speech to the Second Session of the 11th National Committee of the Chinese People's Political Consultative Conference (CPPCC), the country's top political advisory body.
China's yuan, or Renminbi, can be freely convertible on the current account but not on the capital account, preventing it from being a reserve currency or a choice in international trade settlement. China has announced trial programs to settle trade in the yuan, a move analysts say will facilitate foreign trade as Chinese exporters might face losses if they continue to be paid in the US dollar. The dollar's exchange rate has become more volatile since the global financial crisis. Economists say the move will increase the acceptance of the currency in Asia, which will help it become an international currency in the long run.
Other analysts argue a fully convertible yuan will hurt China as it would allow massive capital outflow during a financial crisis. Meanwhile, Chinese authorities remain cautious. It's possible that the global financial crisis will facilitate the process of making the yuan internationally accepted, but there's no need to push for that, Yi Gang, vice central bank governor, told Xinhua earlier this month. That process should be conducive to all sides, he said. Xu Shanda, former vice director of the State Administration of Taxation and a CPPCC National Committee member, urged for faster paces in making the yuan an international currency as a way of increasing national wealth. He said the United States and the European Union have obtained hefty royalties from the international use of their currencies while China has become the biggest source of that income. A royalty, or seigniorage, results from the difference between the cost of printing currency and the face value of the money. "China's loss due to royalty payment has far exceeded the benefit of not making the yuan an international currency," he said in a speech to the annual session of the CPPCC National Committee, without elaborating. China's State Council, or Cabinet, said last December it would allow the yuan to be used for settlement between the country's two economic powerhouses -- Guangdong Province and the Yangtze River Delta -- and the special administrative regions of Hong Kong and Macao. Meanwhile, exporters in Guangxi Zhuang Autonomous Region and Yunnan Province will be allowed to use Renminbi to settle trade payments with ASEAN (Association of Southeast Asian Nations) members.
|
||||||
       |
主站蜘蛛池模板： 桃园县| 荔浦县| 巨鹿县| 沈阳市| 伊金霍洛旗| 崇仁县| 绥阳县| 乌拉特后旗| 宿州市| 西昌市| 无棣县| 深泽县| 姚安县| 分宜县| 襄垣县| 崇阳县| 壤塘县| 上饶县| 周至县| 昌江| 丰原市| 阿勒泰市| 老河口市| 洪湖市| 星座| 石屏县| 高青县| 石泉县| 岢岚县| 阿坝县| 忻城县| 马龙县| 秦皇岛市| 龙胜| 玉树县| 唐海县| 库车县| 施秉县| 十堰市| 额尔古纳市| 白河县| 和田市| 大洼县| 昌黎县| 龙口市| 江孜县| 合作市| 长兴县| 阳原县| 伊春市| 德化县| 康马县| 大宁县| 固阳县| 江西省| 定边县| 紫阳县| 镇赉县| 华坪县| 奈曼旗| 南华县| 运城市| 临朐县| 南乐县| 龙里县| 花莲县| 富阳市| 巴东县| 凤凰县| 宁津县| 江永县| 焦作市| 宣武区| 资中县| 岳西县| 阳谷县| 兖州市| 芷江| 北宁市| 神池县| 涞水县| 四平市|
China should speed up reforming its financial system to make the yuan an international currency, said political advisors Saturday.
