SHANGHAI - the increased use of the Chinese yuan in trade and investment regulations will pave the way to becoming a fully convertible currency, although the process will be progressive, Central Bank Governor Zhou Xiaochuan said Friday, without offering any time.
Beijing has tried to revive the world of the influence of its currency by promoting the use of the yuan to foreign trade, bilateral settlement investment and signing currency swaps with other countries.
The yuan widely expected to become a major global reserve currency with the dollar and the euro. Analysts say that to occur, however, China would need make the yuan fully convertible, and the Government gave no clear indication of when that might happen.
"When there is a certain cross-border use of the yuan, there will be a natural demand that the yuan will move to the total and orderly convertibility," Zhou said Lujiazui forum, an annual gathering of Chinese officials and executives of Shanghai.
"The cross-border use of the yuan, at the initial stage, means the use of yuan in commercial activity and investment." "During this time, we allow also the yuan be used in financial transactions in a prudent and cautious manner," said Zhou.
Zhou made headlines in March 2009, by proposing possibly replace the dollar as main reserve in the world with a consolidated version of the rights special drawing (DTS), unit of account of the Monetary Fund International.
The idea is considered premature by some, but Zhou led a program aimed at stimulating the use of the yuan in trade and investment to ensure the currency becomes a major component of the CSD.
In its efforts to a progressive liberalization of its market, China plans to launch its so-called international Council of Shanghai, which will allow foreign companies to list on the continent for the first time.
Speaking at the forum Friday, NYSE Euronext Chairman Jan-Michiel Hessels said was working with the Chinese authorities to prepare the launch of the Commission and helped to develop a market of products derived from the stock market.
Hessels, stated that the NYSE was also strongly interested in the list on the international Board, although he belonged to the Chinese authorities to decide.
"We are strongly interested." As a stronger leader stock exchange that we feel that we should be listed on the international scene, "he told Reuters on the sidelines of the Conference."
"It is for the authorities to see if we are still the favorite candidate."
HSBC (HSBA.)(L), Unilever (ULVR)(L) and Standard Chartered Plc (STAN).(L) have said they want to when the rules allow the list on the Shanghai Stock Exchange.
POLICY BALANCE
Zhou of the PBOC said that the Government seeks to strike a political balance between inflation control and support economic growth.
"We must find a new point of balance in which we can promote economic growth on the one hand and control inflation," said Zhou.
"It y still numerous uncertainties even if the global economic recovery is lighter than last year," he said.
China must "counter-cyclical" policies because the economic cycle of the country is different from that of developed countries, said Zhou.
Beijing, eager to put a lid on inflation which runs close to a maximum of 3 years, has taken a series of tightening measures over the past months, including an increase in mandatory reserves banks and interest rates.
The last rise of reserve bank, which came after that data showed growth in the money supply has slowed down and plant of China, stated that the container of the inflation and absorb the excess liquidity has remained a Government priority.
No comments:
Post a Comment