Tuesday, March 20, 2012

China yuan could be reserve currency with reform: IMF

The dollar's death by a thousand cuts continues.  The IMF's Christine Lagarde stated Sunday that China's yuan is poised to become a reserve currency in the future.  Perhaps replacing Dominique Strauss-Kahn was not such a good idea after all. 

BEIJING (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.
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