Yuan's Internationalization Takes Years, Includes Trade-Offs, Former PBOC Chief Says
Song Yikang
DATE:  Aug 13 2018
/ SOURCE:  Yicai
Yuan's Internationalization Takes Years, Includes Trade-Offs, Former PBOC Chief Says Yuan's Internationalization Takes Years, Includes Trade-Offs, Former PBOC Chief Says

(Yicai Global) Aug. 13 -- The internationalization of the yuan should be carried out in a persistent way because results will take years of efforts, Zhou Xiaochuan, the former president of China's central bank said on Aug. 11.

Keep a low profile, take a trade-off, be persistent, and avoid irresolution -- these four pieces of forex advice were given by Zhou at the China Finance 40 Yichun Forum. The internationalization of the yuan depends on market participants' willingness to use the currency and therefore it is necessary to keep a low profile, he said.

"To advance the internationalization of the yuan, we must carry out reforms in the free use of yuan and its exchange rate mechanism," Zhou said, adding that the process includes some compromises. "It is inevitable to maintain something and give up the rest. Those expecting to seize whatever they always want are left with nothing in the end."

Despite the fact that the fluctuating currency rates affect the economy and the society, China should avoid irresolution during the process of internationalization, which causes adverse long-term effects.

Editor: Emmi Laine 

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Keywords:   RMB Internationalization,Central Bank,Financial Reform,CNY,USD,Forex