Renminbi to Play a Better Role in the Financial Trade System

Renminbi to Play a Better Role in the Financial Trade SystemThe renminbi will be playing a proper role in the world financial system in tandem with China’s importance in the country’s global growth and international trade. Foreign politicians and economists backed by the currency inclusion in the International Monetary Fund Special Drawing Rights basket during the second Understanding China Conference in Beijing. The support came ahead of the IMF board meeting to discuss the issue. During his keynote speech, State Councilor Yang Jiechi showed his appreciation for the countries that supported the renminbi’s inclusion in the basket.

The three day conference that opened Sunday is attended by more than 40 foreign politicians, business executives and economists. Majority of these countries stated that the RMdedin the SDR basket as it is needed for development and for international economic and trade cooperation. Countries should be adopting a proactive attitude to international financial cooperation to help improve the global governance system. Former Chilean president Ricardo Lagos stated that the IMF special drawing rights basket is its fist attempt in achieving an international reserve currency. The renminbi’s inclusion in the basket is China’s way to participate in the global financial governance.

The International Monetary Fund is discussing the currency’s possible inclusion the SDR basket during a board meeting on Wednesday. Although no date have been set in announcing the final decision, experts believe the majority of the IMF member will agree to the move. China accelerated its financial reform in the recent months and is promoting capital account liberalization and the renminbi internationalization.

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