Gov't Restrictions Prevent Yuan from Going Global

The steadily rising yuan would definitely become a more important currency, but it might take 10 or even 20 years to become an international one, reports the South China Morning Post.


Top mainland and Hong Kong financial heavyweights and officials are eager to boost the international status of yuan but bankers and brokers say big challenges lie ahead before the yuan can become an international currency. While China has been moving to make the yuan more accessible, Beijing still has capital controls, and all transfers of yuan in or out of the country need government approval, says the Post.


Legendary investor Jim Rogers described as "mission impossible" plans to internationalise the yuan. "It is ludicrous to think a blocked currency can ever go very far," Rogers told the Post. "A freely convertible yuan would have extraordinary possibilities however."


The value of yuan hit new high against the U.S. dollar Monday as the central parity rate of the yuan was set at 6.6732 per U.S. dollar, according to the data released by the China Foreign Exchange Trading System.





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