Well, US Treasury sec Tim Geithner’s bond-selling trip to China certainly paid off…
NEW YORK (Reuters) – A top Chinese banker on Sunday called on the U.S. government and the World Bank to sell yuan-denominated bonds in Hong Kong and Shanghai to encourage the development of debt markets in those centers and to promote the yuan as a major international currency.
“I think the U.S. government and the World Bank can consider the possibility of issuing renminbi bonds in the Hong Kong market and the Shanghai market,” said Guo Shuqing, the chairman of state-controlled China Construction Bank (CCB), the world’s second-biggest bank by market value.
In an interview with Reuters, Guo said it was in American interests to see the yuan, also known as the renminbi, become a currency that is traded across the globe. He said that is largely because of the symbiotic relationship between U.S. purchases of Chinese goods and China’s purchases of U.S. assets with the proceeds.
Guo, who is a former head of China’s foreign exchange administration, said there should be “mutual cooperation” between the U.S. and China to promote China’s financial sector and markets. . . .
(H/T Alea).
Related links:
Roubini: the renminbi will replace the dollar - FT Alphaville
Geithner confident of China’s support – FT
China to US: We hate you – FT Alphaville