USEUROPEAFRICAASIA 中文雙語Fran?ais
    Home / World

    Yuan useful in corporations' overseas deals

    By Wei Tian | China Daily | Updated: 2011-09-13 07:44

    XIAMEN, Fujian - China should formulate policies to encourage more companies to use the yuan in the settlement of their outbound direct investment (ODI), said a central bank official.

    "The scope of applications for the yuan is not much different from that of the US dollar and euro ... and it will not be long before the yuan becomes fully convertible," said Xing Yujing, deputy director of the People's Bank of China's monetary policy department II.

    That division is in charge of driving the yuan's internationalization. Using the yuan in ODI could ease financing obstacles faced by companies investing overseas and let other countries share the fruits of China's strong economic growth, Xing said on Friday.

    Xing made the comments at a supplementary forum of the 15th China International Fair for Investment and Trade.

    Minister of Commerce Chen Deming on Thursday called for stronger support for companies investing abroad, including "a broader channel for cross-border flows of yuan".

    Xing said: "Many companies were easily exposed to the risk of exchange-rate fluctuations in the global market. You can't expect everyone to be a forex expert, thus using the yuan is a more secure method."

    Moreover, the fear of a second global crisis could result in a "dollar shortage" because of its status as the "reserve currency", and that has led to heavy demand for dollar-denominated loans at a high cost, Xing said.

    "But the liquidity of the yuan is still guaranteed, and it is also a much simpler process than to swap twice when settling in dollars," she said.

    The central bank has been formulating policies to provide yuan loans for overseas projects, with nine banks offering such services, she added.

    As of the end of 2010, China's total ODI was $317.2 billion, the 17th largest in the world, with investments in 178 nations and regions. The Asia-Pacific region and Latin America were the top two destinations for China's ODI.

    A survey by HSBC Holdings Plc in May suggested that yuan would replace the British pound as the third most popular currency for trade settlement globally in the second half of 2011.

    According to Xing, overall cross-border settlements in yuan exceeded the equivalent of $1.1 trillion in the first seven months of this year, compared with $500 billion last year, involving more than 140 countries and regions worldwide.

    Edwin Fung, global chair of KMPG's Global China Practice, said using the yuan in ODI would surely benefit many companies that face financing difficulties.

    "Many Chinese companies could hardly get a loan from a foreign bank, for they have no credit record abroad," Fung said.

    According to Xing, using the yuan would also be a benefit for destination countries, as they could use the yuan for foreign direct investment (FDI) in the Chinese bond market.

    The Chinese bond market is the world's fifth largest, with more than 200 billion yuan ($31 billion) in cash deals a day. The injection of foreign capital would have little impact on the overall stability of the Chinese financial market, Xing said.

    FDI projects still require individual approval, but policies will be issued in the near future to change the process, Xing said.

    Vice-Premier Li Keqiang said during a visit to Hong Kong in August that the central government will strive to build the city into an offshore center for yuan businesses.

    The Financial Times, meanwhile, reported that the United Kingdom was likely to become another offshore market for the yuan, and it said Vice-Premier Wang Qishan's UK visit was part of a bilateral effort toward that goal.

    The yuan already meets the conditions to be an international currency for reserve and settlements. It will play an important part in achieving close relations with emerging economies and establishing a new international monetary system, Xing said.

    China Daily

    (China Daily 09/13/2011 page15)

    Today's Top News

    Editor's picks

    Most Viewed

    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    日本无码小泬粉嫩精品图| 国产AV巨作情欲放纵无码| 久久精品无码专区免费东京热| 中文字幕人妻无码一夲道| 久久男人Av资源网站无码软件 | 88久久精品无码一区二区毛片| 中文字幕亚洲无线码| 久久中文字幕精品| 国产精品无码AV一区二区三区| 中国无码人妻丰满熟妇啪啪软件 | 中文字幕亚洲情99在线| 精品视频无码一区二区三区| 白嫩少妇激情无码| 亚洲国产综合精品中文第一区| 人妻一区二区三区无码精品一区 | 水蜜桃av无码一区二区| 中文国产成人精品久久亚洲精品AⅤ无码精品 | 最好看的2018中文在线观看| 久久久无码一区二区三区| 亚洲AV无码专区电影在线观看 | 中文字幕有码无码AV| 乱人伦人妻中文字幕无码| 亚洲一区无码中文字幕| 亚洲av无码天堂一区二区三区| 国产亚洲精品无码成人| 亚欧免费无码aⅴ在线观看| 亚洲av无码专区在线播放| 夜夜添无码试看一区二区三区| 免费看又黄又无码的网站| 少妇性饥渴无码A区免费 | 中文字幕日本人妻久久久免费| 日韩在线中文字幕| 中文无码成人免费视频在线观看| 亚洲午夜国产精品无码老牛影视| 日韩亚洲国产中文字幕欧美| 亚洲成av人片不卡无码久久| 色噜噜综合亚洲av中文无码| 欧洲成人午夜精品无码区久久| 久久亚洲AV成人出白浆无码国产| 少妇无码AV无码专区线| 精品视频无码一区二区三区|