1. LINE

      Text:AAAPrint
      Economy

      Yuan's SDR inclusion helps advance reform of int'l financial system: experts

      1
      2015-07-13 08:52Xinhua Editor: Gu Liping

      The International Monetary Fund (IMF) should include Chinese currency renminbi (RMB) into its special drawing rights (SDR) basket as it will help reform the international financial system to reflect the growing weight of major emerging market economies, experts said.

      "The international system of economic governance is at a turning point," and particularly the IMF "is facing challenges on all sides," Harold James, professor of History and International Affairs at Princeton University, and Domenico Lombardi, director of the Global Economy Program at the Centre for International Governance Innovation in Canada, wrote in a recent article published on the Project Syndicate website, one of the world's leading op-ed websites.

      The U.S. Congress has blocked the IMF 2010 quota and governance reforms that would expand the role of emerging economies in the institution for years, and the "Europe has drawn the organization into its debt crisis" with Greece having already missed a payment on its IMF loans, the experts said, adding that the IMF also " carries a stigma" in Asia because of its flawed response to the region's financial crisis in the late 1990s.

      "How can the IMF reprise its role as a guardian of international financial stability? One solution could be to adjust its international reserve asset, the Special Drawing Rights, by adding the Chinese renminbi to the basket of currencies that determines its value," they said.

      The SDR was created in the 1960s as an international reserve asset that IMF members can claim in times of need. Currently, there are only four currencies in the SDR basket, namely the U.S. dollar, the euro, the British pound and the Japanese yen.

      In order to serve a stable reference unit at a time of increasing exchange-rate volatility, "the SDR basket would need to be more comprehensive, including the currencies of large emerging economies, beginning with China," the experts said.

      The IMF is conducting its five-year review of the SDR basket this year and will decide whether to include the RBM into its basket this fall. At the last SDR review in 2010, the RMB, or the yuan, met the export criterion, but was assessed as not meeting the "freely usable" criterion.

      Taking stock of progress in the RMB's international use in recent years, the experts believed that the RMB now meets the requirement of being "freely usable."

      "Since the introduction of a series of domestic reforms aimed at increasing the renminbi's use in international payments, the currency has become the fifth most used for that purpose, accounting for over 2 percent of such transactions. That may not seem like a large share, but it is less than one percentage point below that of the Japanese yen," they argued. "The one sticking point that remains is that the renminbi is not freely convertible, with China's government having yet to eliminate capital controls."

      But the IMF has revised its stance on capital controls in recent years and major central banks have been moving toward adopting a mild form of capital controls, according to the experts, suggesting that being "convertible" should not become a key obstacle for the RMB's admission to the SDR basket.

      China's market-oriented reform of the RMB exchange rate could also spur investors to advocate for a global asset, they said, noting that the U.S. dollar has appreciated against almost every currency this year except the RMB.

      The IMF formally changed its view of the RMB exchange rate in May, declaring that it was "no longer undervalued." Many experts believed that the value of RMB has reached equilibrium.

      "If the IMF is to remain relevant at a time of rapid economic transformation, it must adapt. By adding the Chinese renminbi and perhaps other emerging-market currencies -- to the SDR basket,it would demonstrate its willingness and ability to do just that,"the experts concluded.

      Related news

      MorePhoto

      Most popular in 24h

      MoreTop news

      MoreVideo

      News
      Politics
      Business
      Society
      Culture
      Military
      Sci-tech
      Entertainment
      Sports
      Odd
      Features
      Biz
      Economy
      Travel
      Travel News
      Travel Types
      Events
      Food
      Hotel
      Bar & Club
      Architecture
      Gallery
      Photo
      CNS Photo
      Video
      Video
      Learning Chinese
      Learn About China
      Social Chinese
      Business Chinese
      Buzz Words
      Bilingual
      Resources
      ECNS Wire
      Special Coverage
      Infographics
      Voices
      LINE
      Back to top Links | About Us | Jobs | Contact Us | Privacy Policy
      Copyright ©1999-2018 Chinanews.com. All rights reserved.
      Reproduction in whole or in part without permission is prohibited.
      主站蜘蛛池模板: 3d成人免费动漫在线观看| 久青草视频97国内免费影视| 99在线精品视频观看免费| 亚洲av女电影网| 99精品在线免费观看| 亚洲s色大片在线观看| 精品亚洲永久免费精品| 亚洲成av人片天堂网| 99精品免费观看| 久久久久亚洲Av无码专| 日本免费网站视频www区| 亚洲国产韩国一区二区| 69成人免费视频无码专区| 亚洲第一综合天堂另类专 | 亚洲熟妇无码AV不卡在线播放| 国产人在线成免费视频| 亚洲国产无线乱码在线观看| 五月婷婷亚洲综合| 成人免费一区二区三区 | 亚洲国产高清人在线| 4虎1515hh永久免费| 亚洲中文字幕无码久久2020| 国产中文字幕免费| 国产在线国偷精品免费看| 亚洲嫩模在线观看| 四虎影视大全免费入口| 亚洲精品视频免费| 亚洲精品成人网站在线播放| 永久在线毛片免费观看| AAAAA级少妇高潮大片免费看| 亚洲日本中文字幕| 日本一道在线日本一道高清不卡免费 | 亚洲AV无码久久久久网站蜜桃 | 成年黄网站色大免费全看| 亚洲精品无播放器在线播放| 国产精品亚洲综合一区| 中国人xxxxx69免费视频| 美女无遮挡免费视频网站 | 亚洲色大成网站www永久一区| 91成人免费观看网站| caoporm超免费公开视频|