"Yuan" on track to become Asia 'anchor' currency: ADB

[Ronzkie23]

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China's yuan is increasingly being used to settle trade transactions in Asia, gradually cementing its way to becoming a regional 'anchor' currency, the Asian Development Bank (ADB) said Thursday.
The rise of the currency's use in trade and in the financial markets is likely to nudge China to further open up its financial sector if it wants the yuan to play a bigger global role, the Manila-based lender said.
The yuan, or renminbi, "is being increasingly used to settle trade transactions", the ADB said in a statement issued in Singapore at the launch of its latest report, the Asian Economic Integration Monitor.
"Over time it could become an anchor currency, helping the region to integrate their economies, cooperate on monetary and finance issues as well as gradually open up the (Chinese) financial market," the statement said.
Iwan Azis, head of ADB's Office of Regional Economic Integration, told reporters at the launch that some countries engaging in *****eral trade with China settle in renminbi, and their number has been increasing.
"I know that policymakers in Beijing are actively persuading ASEAN countries to use yuan for their *****eral trade settlement with China," he said, referring to the 10-member Association of Southeast Asian Nations.
Hong Kong, Singapore and London settle some international trade in yuan, and this month the Singapore Exchange said it is ready to quote, trade, clear and settle securities denominated in yuan, the ADB report said.
"All in all, it makes sense that some of the players -- exporters and importers -- start to accept the use of alternative currency, and since China is the biggest player in the field, they accept the use of the yuan for trade settlement," Azis said.
He said it is "only a matter of time" before the yuan becomes an anchor currency, given that China is now the world's second biggest economy.
Since late 2008 China has established 20 *****eral local currency swap arrangements with countries within and outside Asia, totalling 1.6 trillion yuan ($157 billion), ADB said.
In the first quarter of this year, current account transactions settled in yuan were 8.6 percent of China's total current account deals, well above the 5.7 percent in the same quarter last year, it added.
"This is a very big step forward. Definitely, they are pushing the renminbi toward internationalisation," ADB economist Lei Lei Song said in Singapore.
He said, however, that becoming an anchor currency does not automatically mean the yuan will become part of the forex reserves of Asian countries, most of which hold the US dollar, euro and the Japanese yen.
Being an anchor currency means that regional countries that use the yuan to settle their trade with China will manage their currencies depending on the yuan's movements.
The yuan can become a reserve currency if China opens up its financial markets and allows other countries to buy and hold yuan assets, said Song.
Malaysia's central bank is allowed to buy yuan bonds, he said, adding that China, Japan and South Korea had agreed to purchase each other's government bonds, while the yen and the yuan can be traded in each of the countries' financial markets.
"Everything is moving in a managed away," Song added.

Source: Yuan on track to become Asia 'anchor' currency: ADB - Yahoo! News Philippines

- Hahahaha!Nagdamgo jud ang China ani... after all na gusto nila claim ang tanan pwede ma claim sa South China Sea karon na pud gusto nila himoon og Asian Money ang "YUAN" Dyos Meyo por Santo!!Porya Buyag lng tawon!! Mas mo prefer pako Japanese Yen nalang kaysa ani mga Letsy Chekwa!! No to Communist and eating fetus Country.. SHAME on THEM!!!


KAMO UNSA INYO MASULTI ANI MGA BRO'S AND SIS?TUGOT BA MO NGA KWARTA SA MGA CHEKWA NGA "YUAN" ANG HIMOON ASIAN'S CURRENCYAHAHAHAHAHAH!

[FAQ]

Knowing the country's political actions and how they handle international relations with neighboring countries , it's impossible Yuan would be a reserve currency even if it's just in ASEAN . Who would like to hold a dirty toilet paper anyways .

[edgeknife]

di pod ko uyon aning Yuan nga mo dominate sa Asian money currency in the whole Asia.

knowing china, they are the master of fake & counterfeit items. basin mopalit ta og yuan or magpailis ta sa atong peso to yuan sa mainland china, fake pod na.

kini gyud ning mga instik kwakang! ayaw namog binuang duha. kay masuko ang japan, korea, og ASEAN countries ana. hasta pod ning mga arab countries nga part sa Asia masuko pod ninyo.

[Ronzkie23]

hahahahaha!bout-bout pud sila part.. nagdamgo nga nagmata sila bah.. hahahaha!maskin ako, di pud ko mogunit ana YUAN oi maypa JAP YEN kay makaingon jud ka nga naay dignity bah.. pero kini mga Chekwa nga YUAN gi-ahak lng.. basin ma TY ato PESO ko magpalit ta, kay ilisan nya noon ta FAKE.. Master raba kaayo ni mga Chekwa magbuhat og FAKE.. mag mass production na sila FAKE YUAN para sa Pilipinas.. kalooy ni juan dela cruz daghan mailad..!

[Dorothea]

This is crazy. Haven't we learned from Europe and the big mess caused by their "euro"? crazy...

[edgeknife]

hahahahaha!bout-bout pud sila part.. nagdamgo nga nagmata sila bah.. hahahaha!maskin ako, di pud ko mogunit ana YUAN oi maypa JAP YEN kay makaingon jud ka nga naay dignity bah.. pero kini mga Chekwa nga YUAN gi-ahak lng.. basin ma TY ato PESO ko magpalit ta, kay ilisan nya noon ta FAKE.. Master raba kaayo ni mga Chekwa magbuhat og FAKE.. mag mass production na sila FAKE YUAN para sa Pilipinas.. kalooy ni juan dela cruz daghan mailad..!

ako bitaw part, parehas ta di ko anang yuan sa china. kung international monetary currency lang, of course US Dollar jud akong guniton. mao na akong priority ang USD. kung asian countries, maihap ra akong guniton aside sa atoang PH Pesos: Japanese Yen, Singapore Dollar, HK Dollar og UAE/ Dubai Dirham.

[bleedingboi]

No efffffin way!!! I-dula nlang nato ug takyan ang ila sinsilyo, dayun ang ila paper money ato ipang siga sa kahoy para sugnod.

[balipseyev]

Yuan is undervalued, maro kaayo, ang mga products na ibaligya sa china kay mahal, mao ni reklamo gyud sa US...

[monroy]

Anchor currency just means trades with China will be settled in Yuan. It doesn't mean it will be the Asian Currency like the Euro. If you don't want to trade with China then you don't have to use the Yuan. Many posters here either didn't read the article or don't understand what it is saying.

The Yuan is also a fixed (pegged) currency regime like the malaysian ringgit, it's not a managed float like our Peso and so it's not possible for it to be over or undervalued. Its value is whatever their government says it is. This aligns with their mercantilist export strategy the same one used by most Asian tiger economies at one point or another (look it up). Saudi riyal is also a fixed rate currency pegged to USD and one reason why oil is quoted in USD.

[hobie]

I dont like the Yuan to be a reserve or anchor currency. They way I see them, naa sila mga hidden agenda and its not good esp. for our country and to other neighboring country. They are trying to establish their power or position in the world and they are starting with Asia. Unlike US, selfish ang China, to the point of claiming all of South China Sea by virtue of historical accounts only.