A senior economist has said China could achieve full convertibility of the yuan in three to five years - much sooner than previous forecasts.
Xiang Songzuo, deputy director of the International Monetary Institute with Renmin University of China, told China Daily on Friday that full convertibility of the yuan could be achieved within that time span, citing sources from the central bank.
It is the earliest estimate for the full convertibility of the yuan, as most other experts have said such a move was about a decade away.
The People's Bank of China, the country's central bank, declined to comment on Friday.
Wu Xiaoqiu, senior finance professor of Renmin University of China, said it is possible for China to achieve full convertibility of the yuan by 2015.
"The yuan could become familiar to global investors very soon and become a global reserve currency," he said.
The World Bank said in a report on Tuesday that by 2025 the yuan could become a major global currency together with the US dollar and the euro - echoing China's rising say in the world economy.
The dollar, the predominant global reserve currency, has had its credibility dented as the loose monetary policies of the United States damaged the interests of other countries, including China, analysts said. The euro, on the other hand, is suffering setbacks as Europe encounters financial turbulence.
Currently, the Chinese currency is not freely convertible for foreign direct investment and securities transactions, as the country is fearful of possible financial turbulence caused by abnormal capital flows.
Zhou Xiaochuan, the central bank chief, said at the Lujiazui Forum in Shanghai on Friday that when cross-border use of the yuan hits a certain level, there will be a natural demand for full convertibility.
China has been trying to improve the yuan's global clout by encouraging its use in foreign trade and investment.
Zhou's remark to "cautiously" allow the yuan to be used in cross-border financial deals would mark a further step to making it a major world reserve currency.
China launched a pilot program in 2009 to allow banks to conduct trade settlements using the yuan in four cities.
The scheme has been expanded to 20 provincial regions, with the volume of cross-border settlements reaching 530 billion yuan ($81.5 billion) in the first four months of this year, Li Bo, a senior central bank official, told the Shanghai forum.
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Xiang Songzuo, deputy director of the International Monetary Institute with Renmin University of China, told China Daily on Friday that full convertibility of the yuan could be achieved within that time span, citing sources from the central bank.
It is the earliest estimate for the full convertibility of the yuan, as most other experts have said such a move was about a decade away.
The People's Bank of China, the country's central bank, declined to comment on Friday.
Wu Xiaoqiu, senior finance professor of Renmin University of China, said it is possible for China to achieve full convertibility of the yuan by 2015.
"The yuan could become familiar to global investors very soon and become a global reserve currency," he said.
The World Bank said in a report on Tuesday that by 2025 the yuan could become a major global currency together with the US dollar and the euro - echoing China's rising say in the world economy.
The dollar, the predominant global reserve currency, has had its credibility dented as the loose monetary policies of the United States damaged the interests of other countries, including China, analysts said. The euro, on the other hand, is suffering setbacks as Europe encounters financial turbulence.
Currently, the Chinese currency is not freely convertible for foreign direct investment and securities transactions, as the country is fearful of possible financial turbulence caused by abnormal capital flows.
Zhou Xiaochuan, the central bank chief, said at the Lujiazui Forum in Shanghai on Friday that when cross-border use of the yuan hits a certain level, there will be a natural demand for full convertibility.
China has been trying to improve the yuan's global clout by encouraging its use in foreign trade and investment.
Zhou's remark to "cautiously" allow the yuan to be used in cross-border financial deals would mark a further step to making it a major world reserve currency.
China launched a pilot program in 2009 to allow banks to conduct trade settlements using the yuan in four cities.
The scheme has been expanded to 20 provincial regions, with the volume of cross-border settlements reaching 530 billion yuan ($81.5 billion) in the first four months of this year, Li Bo, a senior central bank official, told the Shanghai forum.
1 2
Weekly review
May 12
No winners in U.S. hi-tech export controls
May 12
China should view livelihood issues from strategic perspective
May 11
Syria will not be another Libya
May 06
Beijing-Shanghai high-speed railway to launch 10-day trial run
May 14
The week in pictures
May 11
2000-year-old wine unearthed in Henan province
May 11
Scientist: China plans to build lunar research base
May 09
Apple employee, customer reach settlement after Beijing iPad brawl
May 12
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May 12
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