March 2, 2011

China Says Yuan Could Become A Reserve Currency! No Way!!! Say It Isn't So... :/

Reuters news
written by Aileen Wang and Kevin Yao
Wednesday March 2, 2011 8:54pm EST

The Chinese yuan could potentially become a world reserve currency as the country gears up to boost its global clout, deputy central bank governor Yi Gang said in remarks published on Thursday.

"Why do global investors like to hold a certain currency and make investments in a market? They mainly consider its safety, returns and depth, and the liquidity of the market. China's market and the yuan have full potential," Yi said in an article published in the official Financial News.

Beijing has vowed to open its capital account in a selective manner and is stepping up efforts to internationalize the yuan.

"We need to quicken the pace of internationalization of our capital markets to improve the global status of the yuan," Yi added, without elaborating on how to move toward that goal.

The People's Bank of China said on Wednesday that it would allow importers and exporters across the nation to settle trades in the yuan this year, a move that would give yuan a bigger role in the global financial markets.

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