Yuan could become world reserve currency
Russian finance minister Alexei Kudrin believes that if China's currency, the yuan, becomes fully convertible then it could become a world reserve currency. His belief is that it can be done within a timeframe of ten years. China has slowly begun to use its growing economic power to make room for the yuan. Kudrin's plan for China's currency involves the liberalisation of the economy and the convertibility of yuan.
The mentioning of rival currencies is brought about by China and Russia, the number one and number three biggest holders of foreign exchange reserves, because they are having a tough time coping with the volatility of the US dollar. There have been responses from the developed countries, and they have been cool and collected. Backing comes from European Union's economic chief Joaquin Almunia who does not believe that the dollar will be uprooted from its leading position in the world economy. She also believes that political will or a political decision will not change the position of the dollar in the short-term.
Click here for the best currency exchange rates.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.