A Beijing expert says China's currency is moving toward becoming the global standard, although it needs more time.
Compiled by English desk
China’s yuan has met three out
of five market conditions for upstaging the U.S. dollar as the standard
international currency, which is a Chinese government goal, according to a
Li Daokui, director of the China and World Economy
Research Center at Tsinghua University, made the comment based on the recent G20
summit in Washington attended by Chinese
President Hu Jintao and a decision by the Philippines
central bank to include the yuan in its foreign currency
Li called the goal of making the yuan the global standard
“a beautiful vision”, although he said a worldwide switch to China’s currency
from the dollar will take time.
In an interview with Caijing, Li also said he doubts the
euro will replace U.S. dollar as the dominant currency since “an international
currency is essentially the result of economic
But the yuan is on its way. The currency has met some
requirements through its role in China’s sizable economy, its use in a
wide scope of trade, and because its value has been appreciating
Li said the yuan falls short because its exchange rates
are not set on the open market, and because China’s
financial market is immature. The nation’s financial sector currently lacks the
kind of stability that would bring short-term capital flow under
The Filipino government’s decision, however, suggests the
yuan’s influence is growing.
“The new world financial paradigm is not dependent on
negotiation or by declaring who is to replace the U.S. dollar,” Li said.
“Rather, it is dependent on strength.”
Moreover, in Li’s view, the G20 financial summit showed
China has set a goal to gradually
promote its currency as the international currency.
Chinese leaders demonstrated at the summit that
China has a sense of responsibility
for international affairs and wants a stable international financial framework,