China moves on multiple fronts
Piracy - an excuse needed for China to demonstrate she can project her military force beyond her region. Now she is projecting her financial and monetary force over a nascent
BEIJING, Dec. 25 -- China's currency, Renminbi, is likely to join other international currencies to be used for forex reserves by other economies, according to Wu Xiaoling, former vice governor of the country's central bank and now the deputy head of the financial and economic committee under the top legislature.
Wu made the remarks in her article carried by the latest annual issue of the leading business magazine Caijing.
Wu wrote that China should make preparations in its economic structure and its financial regime for its currency to be internationalized.
Prior to making the Renminbi, also called yuan, a currency used for forex reserves by other economies, it may be allowed to be used for trade settlements between China and some other countries and regions, according to Wu.
In China's neighboring countries, there were calls for the yuan to be used to settle bilateral trade payments, she said. China has signed settlement agreements with eight neighboring countries, including Russia, Mongolia, Vietnam and Myanmar, assuming a voluntarily choice of settlement currency, she added.
Many were confident of the yuan and willing to settle trade payments in the Chinese currency, as it remained strong, Wu said.
"China should create conditions for the yuan to become an international settlement currency," she stressed.
It is necessary to expand and deepen the yuan-denominated financial markets and step up the process to realize the full convertibility of the currency and provide investment channels for yuan holders, according to Wu.
This will further dry up demand for US Dollars and then, once their mates are using their currency they will unfix themselves from the US Dollar completely. And it's bye, bye America.
Most of China's external trade is settled in U.S. dollar or the euro at present. But, the paper said, many analysts predicted the dollar might depreciate substantially in the coming years because of the ailing U.S. economy.
"The move will also increase the yuan's acceptance in Asia, which will help it become an international currency in the long run," Zhao told the paper.
The yuan's acceptance has been rising in recent years, thanks to the nation's economic prowess and its 1.9 trillion reserves of foreign exchange, according to the paper.
And a cyber war has broken out between China and Japan:
The site is still out of action this afternoon. China 1, Japan 0.