(Yicai Global) Oct. 24 -- The long-term goal of internationalizing the yuan is irreversible, and China should take advantage of the current opportunity to steadily promote the yuan's internationalization, the 21st Century Business Herald China quoted Sheng Songcheng, a counselor at the People's Bank of China, as saying.

China is the world's second largest economy and the biggest import and export trade country, Sheng said. The internationalization of the yuan should become China's long-term strategic goal, and when the time is ripe, the country should gradually push it forward, he said.

The yuan's exchange rate has been steadily increasing, and China's foreign exchange reserves have risen eight months in a row to a level that can meet preventive needs, Sheng said, adding that with improvements to yuan exchange rate flexibility, the forex reserves the country needs will decline further.

China is opening up its bond market, providing a channel for offshore yuan to flow back into the country. China's Go Out policy encouraging Chinese enterprises to invest overseas and the Belt and Road initiative have created conditions for yuan internationalization and put forward new requirements, he said.

Interest rates, exchange rate reform and capital account liberalization are an organic whole, and they are symbiotic interdependent preconditions for one another, Sheng said.

The country should pay attention to the opening of the market through programs such as the Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect and Bond Connect, and further expand financial market access, he said.

Coordinating and promoting financial reforms is conducive to reducing shock to the financial system and completing financial marketization reform in a smooth and orderly way, Sheng said.