💥 Fed cuts sparks mid cap boom! ProPicks AI scores with 4 stocks +23% each. Get October’s update first.Pick Stocks with AI

Ex-PBOC chief sees global yuan role after a decade

Published 07/03/2009, 03:29 AM
Updated 07/03/2009, 03:32 AM
TGT
-

BEIJING, July 3 (Reuters) - The yuan will eventually play a global role alongside the dollar and the euro, but the new monetary order will take a decade or more to evolve, a former Chinese central bank governor said on Friday.

Dai Xianglong, currently chairman of China's National Social Security Fund (NSSF), said the dollar would not lose its supremacy overnight.

"The dominant position of the U.S. dollar will not weaken abruptly, but currency multi-polarisation is the trend," Dai, who was governor of the People's Bank of China from 1998 to 2002, told a forum in Beijing.

The transcript of his speech was published on www.china.com.cn.

"After 10 years' effort or even longer, we might construct an international currency system led by the dollar, the euro, the yuan and possibly other currencies," Dai said.

He said the new system he had in mind would be backed by 13 or 20 major economies. He did not elaborate.

China hopes for diversification of the international currency system in the future and it would be "normal" for the issue to be raised at next week's Group of Eight summit, Vice-Foreign Minister He Yafei said on Thursday. [ID:nPEK137542]

On the domestic economy, Dai said he thought growth accelerated in the second quarter from the first-quarter pace of 6.1 percent and said China would be able to hit its target of 8 percent gross domestic product (GDP) growth for all of 2009.

The NSSF that Dai now heads is a fund of last resort for China's patchwork of underfunded provincial pension schemes. (Reporting by Zhou Xin and Alan Wheatley; Editing by Ken Wills)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.