The renminbi should play a proper role in the world financial system in tandem with China’s importance in driving global growth and international trade, senior policy advisers said on Nov 2.
Foreign politicians and economists backed the currency’s inclusion in the International Monetary Fund’s Special Drawing Rights basket at the 2nd Understanding China Conference in Beijing.
Their support came ahead of the IMF’s board meeting this week to discuss the issue.
In his keynote speech to the conference, State Councilor Yang Jiechi voiced his appreciation for the countries that have supported the RMB’s inclusion in the basket.
The three-day conference, which opened on Nov 1, is being attended by more than 40 foreign politicians, economists and business executives.
Yang said: “Many countries have stated that the RMB should be included in the SDR basket. I think this is needed for development, as well as for international economic and trade cooperation.”
He suggested that countries adopt a proactive attitude to international financial cooperation and improve the global governance system.
Yang said the Chinese economy has become a driving force for the world economy and this will continue.
“However, China is still a developing country, and the role that the RMB plays in the international financial system is still limited,” he said.
“We would like to work together with various countries to ensure that international financial cooperation develops in a healthier way.”
Former Chilean president Ricardo Lagos said at the conference that the IMF’s special drawing rights basket is the first attempt to achieve an international reserve currency.
He saw the RMB’s inclusion in the basket as a way for China to participate positively in global financial governance.
The IMF plans to discuss the currency’s possible inclusion in the SDR basket at a board meeting on Nov 4. Although no date has been set to announce the final decision, many experts predict the majority of IMF members will probably agree to the move.
China has accelerated financial reforms, especially in recent months, to promote capital account liberalization and renminbi internationalization.