Money
Asian nations called to cross hold currencies
Updated: 2011-05-28 15:08
(Xinhua)
BEIJING - Asian nations should promote cross-holding of their currencies and trim reliance on currencies of certain nations to push forward reform on the international monetary system, said Fan Gang, a former adviser to China's central bank, on Saturday.
Nations should work to diversify holdings of currencies to make the global financial market safer and tackle the various crisis in terms of the international monetary system, Fan said at a forum in Shanghai.
Including more currencies in forex reserves will reduce dependence on currencies of certain nations and on creditor's rights of certain governments, he said.
He suggested Asian countries should normalize currency cross holding based on the current currency swaps. They can hold sovereign bonds of other nations according to their trade volume, he said.
It will make the nations more concerned about risks in other economies and promote coordination and cooperation in macroeconomic polices, he said.
Some nations in east Asia have expressed a willingness to hold renminbi bonds, he said, but did not specify.
Specials
Room at the inn
The Chinese hotel industry experiences a building boom, prompting fears of oversupply.
Pearls of wisdom
Chinese pearl farmers dominate the world market but now want to work smarter, not harder
Truly a super woman
Li Yuchun first came to prominence in 2005 as the Super Girl winner, and since then has become an international star.