China’s yuan not ready to be world currency: Central bank

Published on The Economic Times, 15 September 2009.

BEIJING: The Chinese yuan has a long way to go before it is ready to be an international currency, a top central bank official said Tuesday, despite a recent push by Beijing to raise the yuan’s world profile.

“We are cautious on the concept of the so-called internationalisation of the renminbi (yuan),” Guo Qingping, vice governor of the People’s Bank of China, told reporters.

“Whether a currency becomes an international currency is not up to a specific country, but is up to the market.”

China has been pushing aggressively for the wider use of the yuan abroad, signing a series of bilateral currency swap agreements in the past few months.

Central bank governor Zhou Xiaochuan earlier this year revealed China’s apparent desire to challenge the supremacy of the US dollar, publishing an essay calling for the dollar’s replacement as the global reserve currency … (full text).

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