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Chinanews,Beijing, March 22 - "RMB is ready to become a new world currency, and the Chinese government should do something to accelerate this process," said Zhao Haikuan, a famous Chinese economist1.
China's GDP growth in 2006 was 10.7%, making it the fourth largest economy in the world, with a foreign exchange reserve of more than $1 trillion. Its great economic strength and good momentum2 of economic growth have already laid a solid foundation for RMB to become a world currency. "China fully3 fulfilled its obligation as a regional power in the previous Asian economic crisis by adhering to the "strong-RMB" principle, winning RMB for the world's trust," added Zhao. Actually, China's complete and efficient banking4 system will also be an advantage for RMB in the future. "I suggest that China should open free conversion5 under capital accounts, which will boost the process of RMB becoming a world currency and help further open of China's financing industry," concluded Zhao.
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