国产热热热精品,亚洲视频久久】日韩,三级婷婷在线久久,99人妻精品视频,精品九热人人肉肉在线,AV东京热一区二区,91po在线视频观看,久久激情宗合,青青草黄色手机视频

Business / Industries

China internationalize only when wise

By Cecily Liu (China Daily Europe) Updated: 2015-02-20 08:51

"China has gained a lot from its currency's internationalization, but such progress is also made with significant costs," Yu says.

He says China should not completely open its capital account controls, as currency stability is an essential part of having a stable economy.

One major issue for China currently is its high M2 to GDP ratio, meaning much of the country's money is concentrated in the hands of a few, and opening up capital account controls too quickly could lead to capital flight, Yu says.

"Although there are no actual figures, there is a lot of anecdotal evidence that many corrupt officials are putting their money offshore, in jurisdictions like the Virgin Islands or Cayman Islands. This could generate a very large capital outflow if adequate controls are not put in place."

Although China's central bank has previously set a target to make the renminbi partly convertible by this year and fully convertible by 2020, Yu believes the mindset of having such a target is not right.

Instead, the correct method is to segment different market players' needs, encouraging foreign direct investment flows into and out of China when there is a real economic need for such flows, but restrict speculative flows.

In the long term, Yu says the renminbi needs to be fully convertible for it to be a global reserve currency, because a reserve currency is one that can be freely traded by those who hold it, so it requires high liquidity.

And in the short term, it is still important for the Chinese central bank to use exchange rate controls to stabilize economic growth in reaction to monetary policies practiced by other international major economies, and the quantitative easing about to be implemented in Europe could be an example of this.

According to European Central Bank announcements last month, at least 1.1 trillion euros will be injected into the ailing eurozone economy, and the program is expected to start next month.

"The QE in Europe could have very negative consequences for the Chinese economy, and it is our priority to guard our economic growth against such big shocks.

"We are already in a currency war. So either we have international coordination to have no intervention by governments in our financial markets, or alternatively we will need to intervene to reduce adverse effects on our economy that other countries' monetary policies are causing," Yu says.

Previous Page 1 2 3 Next Page

Hot Topics

Editor's Picks
...
卫辉市| 新密市| 贵德县| 广安市| 东山县| 岳普湖县| 丰顺县| 衡水市| 威信县| 宁安市| 赤水市| 临猗县| 五指山市| 五大连池市| 廉江市| 邢台县| 临颍县| 鲁甸县| 西城区| 晋江市| 大埔县| 久治县| 榆社县| 双鸭山市| 宜宾县| 榆中县| 栾城县| 阿城市| 西平县| 衡东县| 若尔盖县| 格尔木市| 喀喇| 城市| 长子县| 鄂伦春自治旗| 河源市| 石渠县| 合山市| 陆川县| 溆浦县|