Manila, Jumada II 12, 1433, May 3, 2012, SPA
China's yuan could emerge as a strong international
currency amid weaknesses in the US dollar and the euro, economists
said Thursday at an Asian Development Bank meeting in the
Philippines, according to dpa.
Iwan Azis, head of the Manila-based bank's Office of Regional
Economic Integration, said the Chinese yuan was becoming very
important as China's economy grows.
'It is just a matter of time, it's not a matter of yes or no, but
a matter of time,' he said when asked about the yuan becoming an
international currency.
US economist Jeffrey Sachs said the global financial system would
benefit from having more than one reserve currency in the system
other than the US dollar.
'Ideally, we would like to see at least three or four reserve
currencies and a flexible arrangement among them, and that would be
the dollar, the euro, the yuan and the yen,' he said.
But he noted that Europe must fix structural problems in its
banking and financial systems to 'get the euro once again as the new
pillar of a multi-currency system.'
'The euro is in shock right now ... and it is important that
Europe fixes these structural problems,' he said.
Sachs said he supports China's efforts to make the yuan an
international currency: 'Stronger regional monetary cooperation in
Asia and a stronger role of the yuan are absolutely important for the
function of the international system.'
'China is correctly working hard now to make the yuan
internationalized and that will help the international system as
another pillar in the multi-currency system,' he added.
© Saudi Press Agency 2012
