Mellon Bank: It Is Too Early For RMB To Be Fully Convertible.

Wednesday, March 5th, the global market strategist of "P" > a href= "http://www.91se91.com/news/index_cj.asp" > Mellon bank /a Bank (Bank of New York Mellon) in New York said that although the Central Bank of China is committed to expanding the floating range of the exchange rate of RMB, it is too early for the renminbi to be fully convertible.

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"P Woolfolk" said in an interview with the media: "the direction must be to expand the range and allow the renminbi to float more freely."

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"P," he added, "the main obstacle will be whether they intend to release capital account soon and allow Chinese to invest in US and foreign stock and bond markets.

There is still a long way to go. "

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< p > Chinese officials said to the EU business people in September 2011 that the renminbi will achieve "full convertibility" by 2015.

China has accelerated the use of RMB in international trade and investment activities to reduce its dependence on the US dollar.

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< p > in order to allow "a href=" http://www.91se91.com/news/index_cj.asp "RMB > /a" to join the basket of currencies of the International Monetary Fund (IMF), one of the requirements of the United States and Europe is that RMB should be fully convertible.

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Hu Xiaolian, deputy governor of the Central Bank of China, said on Wednesday that at present, many places around the world want to become the center of overseas RMB, but the key is to see whether trade and investment can make more use of RMB and see whether it will provide diversified RMB products. P

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Li Keqiang, premier of the State Council, said in a government work report released on Wednesday that China will deepen the reform of the financial system, promote the marketization of interest rates, expand the financial institutions' < a href= "http://www.91se91.com/news/index_cj.asp" > the independent pricing power < /a >, and expand the floating rate of the exchange rate to promote RMB capital account convertibility.

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The report of P recently released by the global Interbank Financial Telecommunication Association (SWIFT) showed that the market share of RMB payment continued to rise, ranking seventh in January 2014.

However, the paction is still concentrated in the Hongkong area.

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< p > according to SWIFT's latest report, the market share of RMB in global payment currency in January was 1.39%, an increase of 1.12% over the previous month, and the global ranking rose to seventh from eighth last month.

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P, according to a newly released survey of institutional investors, the yuan will eventually replace the US dollar as the world's premier reserve currency.

China has relaxed relevant controls in the past five years to create RMB as an international trade currency and reduce its dependence on other currencies.

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According to a survey of 200 institutional investors published by P State and Economist Intelligence Unit (EIU), 53% of investors believe that the yuan will exceed the US dollar as the world's main reserve currency.

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