Yuan to be fully convertible by 2015: China
Chinese officials told European Union business executives that the yuan will achieve full convertibility by 2015
By Bloomberg | Updated:
LONDON: Chinese officials told European Union business executives that the yuan will achieve “full convertibility” by 2015, EU Chamber of Commerce in China President Davide Cucino said.
“We were told by those officials by 2015,” Cucino told reporters in Beijing yesterday, declining to identify the government departments involved. He said the step-bystep process was indicated at a meeting in the last several weeks.
A freely traded currency would mark one of the biggest policy shifts since policy makers embraced private enterprise three decades ago. Such a timeline would help China deflect criticism from US and European lawmakers that the world's second-biggest economy is gaining an unfair advantage in global trade by artificially keeping the yuan undervalued.
It would be a year faster than the schedule expected by 57% of 1,263 global investors in a Bloomberg survey published in May. “Making the yuan fully convertible will lead to foreign inflows into China and a stronger yuan,” said Sacha Tihanyi, a Hong Kong-based strategist at Scotia Capital.
“Making the yuan fully convertible is also the key step in pushing it as a reserve currency and enhancing its use in global trade.” The yuan advanced 0.12 percent to 6.3863 per dollar in Shanghai.
“We were told by those officials by 2015,” Cucino told reporters in Beijing yesterday, declining to identify the government departments involved. He said the step-bystep process was indicated at a meeting in the last several weeks.
A freely traded currency would mark one of the biggest policy shifts since policy makers embraced private enterprise three decades ago. Such a timeline would help China deflect criticism from US and European lawmakers that the world's second-biggest economy is gaining an unfair advantage in global trade by artificially keeping the yuan undervalued.
It would be a year faster than the schedule expected by 57% of 1,263 global investors in a Bloomberg survey published in May. “Making the yuan fully convertible will lead to foreign inflows into China and a stronger yuan,” said Sacha Tihanyi, a Hong Kong-based strategist at Scotia Capital.
“Making the yuan fully convertible is also the key step in pushing it as a reserve currency and enhancing its use in global trade.” The yuan advanced 0.12 percent to 6.3863 per dollar in Shanghai.
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