Zhou Xiaochuan: RMB Will Join SDR&Nbsp Sooner Or Later; China Is Not In A Hurry.

On September 8th, Zhou Xiaochuan, governor of the people's Bank of China, said in London that during the fourth Sino British economic and financial dialogue, there was no "special urgency" in China. RMB Special drawing rights (SDR) to IMF.

Zhou Xiaochuan made the above remarks in response to our newspaper briefing at the briefing. He said that China believes that as long as China's economy continues to develop steadily, it will be "sooner or later" to be included in the SDR as the renminbi becomes stronger and stronger. Therefore, it is not China's request to join the SDR.

He further explained that the reason for such a discussion was that the global financial crisis and the difficulties in subsequent economic recovery made many people realize that the original international monetary system is flawed and needs to be changed, and that the role of SDR based on the US dollar, euro, yen and British pound is not big enough and comprehensive enough. He said the discussions would have an incentive for China, and China welcomes this discussion.

Zhou Xiaochuan visited China in September with the Chinese delegation led by Vice Premier Wang Qishan, and held fourth Sino British economic and financial dialogues with the British government on 7-10 September.

Since the outbreak of the financial tsunami, there has been an increasingly strong voice among the international community, hoping to expand the foundation of SDR and develop it into a reserve currency instead of the US dollar. The German Vice Minister of Finance recently appealed again to expand the SDR basket of currencies as soon as possible, especially in the renminbi. The related topics have been included in the agenda of the November Cannes G20 summit. In the same day's dialogue, the British side also expressed support for the timely accession of the renminbi to the SDR.

Outside guess RMB Internationalization The process is accelerating. Over the past year, the total volume of trade settled by RMB in China's foreign trade has risen from 1% to 7%. For this newspaper to ask whether there is an ideal target share, Zhou Xiaochuan replied: "we do not have the proportion of RMB business plan."

He stressed that the internationalization of RMB will be a gradual and long-term process. It is still being explored and explored. What the government can do is to provide more facilitation measures from the policy level. As for the future development of RMB, we should respect the choice of the market more.

As for rumours, the renminbi will be free in 2015. exchange Zhou Xiaochuan reiterated that there was no such plan or timetable.

Osborn, British Chancellor of the exchequer, said at the opening ceremony of the dialogue that he hoped to discuss with the Chinese side how to make London a foreign currency market for the renminbi. In addition, the British media quoted British officials as saying that London will build an offshore trade center in 2015.

However, Zhou Xiaochuan did not respond positively to this question. He acknowledged that the development of RMB overseas business was faster than the past, and the outside world was more active. However, the Chinese principle only promoted RMB investment facilitation, as to where it would become the offshore trade center of the renminbi, and "more respect for market choice".

In the afternoon, the two sides signed two memorandums of understanding on strengthening infrastructure construction and cooperation in the energy sector respectively.

As for specific cooperation projects, Osborn said that China will invest in the UK's offshore power generation projects, while the UK will have new investment projects in China's energy and petrochemical industries.

It is worth noting that the top executives of CIC also took part in the dialogue on behalf of the Chinese side.

In an interview with the British newspaper on the outcome of the dialogue, the British seemed to show more interest in financing infrastructure in the field than in Chinese enterprises undertaking the UK project. Wang Chao, Vice Minister of Commerce, replied to the question of cooperation between the two countries on infrastructure cooperation, saying that the UK has just announced a 192 billion yuan infrastructure investment plan. The Chinese government encourages powerful enterprises to participate in investment cooperation in related fields. The form of cooperation includes PPT (cooperation between the public sector and the private sector), including BOT (construction operation transfer). In the future, the two countries will set up a working group to discuss this issue.