Lagarde: the Chinese yuan could be reserve currency
GMT 18:29:00 2012 Sunday, March 18
Washington said Christine Lagarde, director of the International Monetary Fund in a speech Sunday that the Chinese yuan could become a reserve currency in the future if China undertook further economic reforms.
She said Lagarde, who was talking to the Chinese political leaders and businessmen universal, that China needs a road map for the exchange rate system stronger and more flexible.
China operates a closed system of capital account, and are subject to the control of its currency, the yuan court.
But Beijing says it wants to increase the international use of the yuan in settling trade transactions across borders, has initiated a series of reforms in recent years to achieve that goal.
Lagarde spoke about the “signs of stability” with the global economy was still facing some difficulties in dealing with “some weaknesses”.
She said that “recent years have been very difficult in many parts of the world and in recent months, the situation was disaster.”
She added: “But today we see signs of stability, signs that the policies are paying off. Improved market conditions and recent economic indicators are improving, including in the United States.”
Lagarde welcomed “the important progress in the renewal of support for Greece by the International Monetary Fund and European partners.”
She added: “After this collective effort is no longer the economy on the brink of an abyss and we have reasons to be optimistic calls us.”
But it confirmed that “there are still weaknesses of major economic and financial need to be addressed,” such as the fragility of financial systems and public and private debt, which remains very high in many developed economies or high oil prices.
On the other hand, said he was on Lagarde China “continue to redirect economic growth engines of investment and exports to domestic consumption,” especially in order to ensure a better sharing of the fruits of growth.