Role of yuan as global currency depends on reforms: World Bank
2012-02-27 11:42:52
The acceptance of China's renminbi as global reserve currency will depend on the pace of financial sector reforms and opening of its external capital accounts, the World Bank said in a report on Monday.
"China's growing weight in world trade, the size of its economy and its role as the world's largest creditor will make the internationalization of China's renminbi inevitable," it said.
The report called "China 2030: Building a Modern, Harmonious, and Creative High-Income Society", recommends steps to deal with the risks facing China over the next 20 years, including the risk of a hard landing in the short-term.
"The case for reform is compelling because China has now reached a turning point in its development path," President Robert Zoellick said. The World Bank urged China to complete its transition to a market economy.