News / Asia

New Report Predicts China's Renminbi Will Be Among Dominant World Currencies

A bookstore vendor counts Chinese renminbi notes in Chengdu in southwest China's Sichuan province, (File)
A bookstore vendor counts Chinese renminbi notes in Chengdu in southwest China's Sichuan province, (File)
TEXT SIZE - +

A new report from The World Bank predicts that China's renminbi will join the U.S dollar and the euro as dominant international currencies sometime in the next 10 to 15 years. Some economists say is a major realignment in the global economic order, with developing countries playing a more dominant role.

The World Bank report Multipolarity: The New Global Economy focuses on the growing economic power and influence of leading emerging markets that include China, India, Brazil, South Korea, Russia and Indonesia and several other developing countries.

Half of economic growth

Mansoor Dailami, a senior economist at the World Bank says by 2025 those countries could account for about one half of all global economic growth.

Dailami says a major indicator of the country’s future economic growth is the number of companies that invest and do business abroad. He says between 1997 and 2010 the bank identified 10,000 companies from developing countries involved in cross-border transactions.

“That you see more and more companies from India, from China, from Indonesia, from South Africa, from Brazil, from Mexico, these companies are venturing outside in terms of the production, in terms of the investment, in terms of their financing. In short these companies are becoming multinationals,” Dailami explained.

Prominent role

Of the emerging economies, he says China is posed to play the most prominent role in setting global economic policies. Dailami says China is already taking steps to make the renminbi a dominant international currency like the U.S. dollar and the euro.

“It’s a way of China diversifying its huge amount of foreign exchange risk. Right now China as I say is the second largest economy, the largest exports in the world, but China borrows and lends in a foreign currency, not its own currency,” Dailami said.

Reserves

He says China holds $3 trillion in currency reserves and as the dollar continues to drop in value, so too does the value of China's reserves. Establishing the renminbi as an international currency that reflects China's strong economic position, could protect it and other countries from fluctuations in the stagnant economies of Europe and America.

The renminbi is not presently an international currency in part because China does not allow it to be converted at free market rates.

But Dailami says Beijing is moving in that direction by increasingly using renminbi in international transactions and by allowing an off shore market in Hong Kong to issue bonds and banks loans in Chinese currency.

You May Like

Analysts Warn of Regional Proxy Conflict in Afghanistan

Analysts warn if Kabul’s neighbors do not start to cooperate, competing desires for influence could deteriorate into a bloody proxy war in the country More

Saudi Intelligence Chief Replaced

Bandar bin Sultan came under criticism for supporting al Qaida, prompting King Abdallah to wrest Syria operations away from him in February, handing them to Interior Minister Prince Mohammed bin Nayef More

Poetry Magazine editor Don Share talks what makes a good poem with VOA's David Byrd

What makes a good poem? And is poetry as viable an art form as it once was? To find out, VOA's David Byrd spoke to Don Share, the editor of Poetry Magazine. More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid