Sunday, 20 Jun 2010
Xinhua quoted a former Chinese central bank governor said, China Renminbi will gradually develop as an international currency though the US dollar will remain the world's dominant reserve currency.

Mr Dai Xianglong chairman of the National Council for Social Security Fund said that the international financial system will be quite different post the global economic crisis.

He said that "The US dollar will remain its dominance, but in the long term, it has a tendency to depreciation. Currencies of emerging economies, including the Renminbi will quickly become international currencies."

Mr Dai believed the dominance of developed economies would decrease while emerging economies caught up. He quoted the International Monetary Fund as saying that the share of developed economies in the global output reduced from 63% in 2000 to 55.3% in 2008 while that of developing and emerging economies increased from 37% to 44.7%.

He added that the economic growth of developed countries this year is estimated to be 2.3% while that of developing countries may reach 6.3%. Both China and India are likely to report growth of more than 8%.

(Sourced from Xinhua)