Yuan could be reserve currency in 10 years, says Russian finance minister
06 Jun 2009
China's yuan could become a world reserve currency once it achieves full convertibility in the next 10 years, Russian finance minister Alexei Kudrin said.
''I think the shortest route would be if China liberalised its economy and allowed the convertibility of the yuan," Kudrin said at a panel discussion at the International Economic Forum at St Petersburg.
''This could take 10 years but after that the yuan would be in demand and it is the shortest route to the creation of a new world reserve currency and I think China needs to think about this," he said.
Kudrin said the decisions taken by the International Monetary Fund (IMF), will be ''illegitimate'' without India and China taking their due place in the global financial body.
Without India and China joining the ranks of key shareholders of the IMF, we would have to look for regional; solution, Kudrin, who holds the rank of vice-premier, said.
''We have certain dissatisfaction, as today IMF does not fully perform its functions," Interfax quoted Kudrin as saying.
Over 2000 participants from all the continents are attending the St Petersburg Forum, dubbed as 'Russian Davos' because of large scale international business representation.
IDBI Bank chairman and managing director Yogesh Agarwal, Sun Group's Nand Khemka, Citigroup CEO Vikram Pandit and Padma Desai of Columbia University were some of the prominent Indian names at the forum besides the official Indian represented consulate-general Radhika Lal Lokesh.