China
        

Economy

More yuan settlements needed to lift currency's status

Updated: 2011-03-08 22:24

(Xinhua)

Twitter Facebook Myspace Yahoo! Linkedin Mixx

BEIJING - China should expand the use of its currency, the yuan, in cross-border trade and investment amid its efforts to internationalize the yuan, a senior banker said Tuesday.

Related readings:
More yuan settlements needed to lift currency's status Renminbi deposits in HK exceeds 300b yuan
More yuan settlements needed to lift currency's status Renminbi trades close to a 17-year high
More yuan settlements needed to lift currency's status Renminbi not undervalued as real exchange rate increases: UN expert
More yuan settlements needed to lift currency's status More internationalized renminbi

Cross-border trade and investment are developing rapidly which boosts overseas demand for the yuan, making it the right time to increase the yuan's status internationally, said Ma Weihua, president of China Merchants Bank.

The yuan should be internationalized in an "active, steady and orderly" manner, he said, noting China will have to challenge the impact of cross-border capital flows and interest rates and exchange rates fluctuations amid the process, he said.

The trial program of yuan settlement in cross-border trade started in 2009 in five cities and then expanded to 20 cities last year.

The People's Bank of China, the central bank, said last Wednesday that it would expand the trial program to the entire country this year.

Premier Wen Jiabao said Saturday in his government work report for 2011 that China would continue to increase the use of its currency in cross-border trade and investment this year and press ahead with making the currency convertible under capital accounts.

E-paper

Sindberg leaves lasting legacy

China commemorates Danish hero's courage during Nanjing Massacres.

Crystal Clear
No more tears
Road to the Oscars

European Edition

Specials

NPC & CPPCC sessions

Lawmakers and political advisers gather in Beijing to discuss major issues.

Sentimental journey

Prince William and Kate Middleton returned to the place where they met and fell in love.

Rent your own island

Zhejiang Province charts plans to lease coastal islands for private investments

The green lantern
Adventures of Pierre
Inland interchange