Yuan as reserve currency

19/03/2012 11:11

The Director of the International Monetary Fund (IMF) to RMB laghard Kristin could become a reserve currency in the future if China further economic reforms. Laghard explained that China need a road map for the exchange rate regime is stronger and more flexible. China runs a closed to the capital account and its currency the Yuan is subject to court control. but Beijing says they want to increase the international use of liwan in settling cross-border commercial transactions, had initiated a series of reforms in recent years to achieve this

China yuan could be reserve currency with reform: IMF

Reuters – Sun, Mar 18, 2012BEIJING (Reuters) - China's yuan could become a reserve currency in future if the country undertakes further economic reform, International Monetary Fund managing director, Christine Lagarde, said in a speech on Sunday.

The IMF chief, speaking to a gathering of leading Chinese policymakers and global business leaders, added that China needed a roadmap for a stronger, more flexible exchange rate system.

China operates a closed capital account system and its yuan currency is tightly controlled, although Beijing has said it wants to increase the international use of the yuan to settle cross border trade and has undertaken a series of reforms in recent years to that end.

(Reporting by Koh Gui Qing; Writing by Nick Edwards; Editing by Jonathan Thatcher)