China Want Yuan as Global Currency

Discussion in 'China' started by prajapati, Jan 18, 2011.

  1. prajapati

    prajapati Regular Member

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    Chinese President Hu Jintao has said the international currency system dominated by the US dollar is a "product of the past".

    Mr Hu also said China was taking steps to replace it with the yuan, its own currency, but acknowledged that would be a "fairly long process".

    The remarks to two US newspapers come ahead of a state visit by the Chinese leader to Washington this week.

    They reflect continuing tensions over currency issues between the two powers.

    The remarks to the Washington Post and Wall Street Journal came in the form of written responses to questions. Mr Hu also reiterated criticism of a decision by the US Federal Reserve to inject $600bn into the economy, which some argue will weaken the dollar at the expense of other countries' exports.

    "The monetary policy of the United States has a major impact on global liquidity and capital flows and therefore, the liquidity of the US dollar should be kept at a reasonable and stable level," President Hu said.

    http://www.bbc.co.uk/news/world-asia-pacific-12203391
     
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  3. JayATL

    JayATL Senior Member Senior Member

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    LOL , would that not mean he would not have to continue the undervalued yuan? It's valiant of him , perhaps even arrogant but hey the guy can be entertaining ...
     
  4. A.V.

    A.V. New Member

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    the idea of world domination has to go beyond this currency and might in coming years , countries that will have a better green technology , a better human resource management would prosper and be strong , this currency fight is just symbolic and a ego clash
     
  5. Blackwater

    Blackwater Veteran Member Veteran Member

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    Yuan my foot. It will rupee Raj karega rupeee bake rahe na koi...
     
  6. pmaitra

    pmaitra Moderator Moderator

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    Just because PRC wants the Yuan to be a Global Currency does not mean the rest of the world is going to lap it up. Currency trade depends a lot on trust and PRC can hardy be trusted with maintaining the stability of Yuan when it has been their official policy to clandestinely keep the Yuan undervalued to ensure they can continue to export their products. It would be like walking straight into a dragon's lair.

    Reference: http://www.businessweek.com/news/2011-01-13/geithner-says-china-must-boost-undervalued-yuan.html
     

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