国产热热热精品,亚洲视频久久】日韩,三级婷婷在线久久,99人妻精品视频,精品九热人人肉肉在线,AV东京热一区二区,91po在线视频观看,久久激情宗合,青青草黄色手机视频

Business / Markets

Challenges ahead to make yuan a global currency

(Xinhua) Updated: 2013-01-14 16:21

MANILA - China needs to address stability and liquidity issues before it can realize its plan to internationalize the yuan and challenge the global dominance of the US dollar, a prominent economist said in a recent forum held in the Philippine capital.

"An international currency that is widely used in private commercial and financial transactions and is held by central banks as reserves has three essential attributes: scale, liquidity and stability," Barry Eichengreen, distinguished professor of economics and political Science at the University of California, Berkeley, said in a forum organized by the Asian Development Bank.

Eichengreen, a former senior policy adviser at the International Monetary Fund, said China has already achieved the first precondition to yuan's success as a global reserve currency - scale. Next only to the United States, China is now the world's second largest economy. Economists have predicted that China will soon overtake the United States as the world's biggest economy.

But Eichengreen notes, "scale while necessary for international currency status is not sufficient." He cited the case of the United States, which back in 1913 was already the world's biggest economy, but even that was not enough for the dollar to dislodge the sterling as the global currency of choice.

The United States back then failed to meet other pre-conditions that will lead to the internationalization of the greenback, liquidity and stability. China, he said, is now in the same position.

China's fast rising economy has encouraged its policy makers to push for the yuan as a global currency reserve by promoting its use in overseas markets. To this end, China has allowed local companies to use the yuan in cross-border trade settlements. It has also permitted foreign investors to invest yuan-denominated funds in China's interbank bond market and signed currency-swap agreements with the Philippines, South Korea, Japan, and Australia.

While China is opening its financial markets, Eichengreen said liquidity remains a challenge. China's bond markets remain small and trading volume is low. Liquidity is a main consideration for central banks when they're considering currencies to hold as a reserve.

Eichengreen also cited the importance of stability, which he said is the most difficult thing to establish given that it has several dimensions political, economic and financial.

Political stability, for instance, will ensure a stable policy environment for investors who will allocate a certain portion of their portfolio to the yuan. Eichengreen suggested that China's regulatory agencies need to be independent "to foster confidence that regulatory decisions are taken with economic stability rather than political considerations in mind."

 

Special Coverage

Yuan goes global

Related Readings

Global use of yuan on the rise

A more global yuan

RMB to appreciate 2%-3% against USD in 2013

Bigger global role for RMB in 2013

Previous Page 1 2 Next Page

Hot Topics

Editor's Picks
...
台北市| 大新县| 福海县| 临城县| 霍州市| 肃北| 哈巴河县| 深泽县| 玉门市| 那坡县| 姜堰市| 平定县| 望谟县| 广州市| 光泽县| 平乡县| 喜德县| 安远县| 康平县| 凯里市| 南平市| 隆尧县| 内江市| 扶余县| 鹤庆县| 高安市| 河西区| 惠东县| 邢台县| 南丹县| 翼城县| 汉川市| 滦南县| 上高县| 宜良县| 宁晋县| 菏泽市| 锦屏县| 临猗县| 齐河县| 从江县|