e-magazine
The Hot Zone
China's newly announced air defense identification zone over the East China Sea aims to shore up national security
Current Issue
Table of Contents
Editor's Desk
Previous Issues
Business Category
Subscribe Now >>
Expert's View
World
Nation
Business
Finance
Market Watch
Legal-Ease
North American Report
Forum
Government Documents
Arts & Culture
Expat's Eye
Health
Science/Technology
Lifestyle
Books
Movies
Backgrounders
Special
Photo Gallery
Blogs
image
Reader's Service
E-mail us
RSS Feeds
PDF Edition
Web-magazine
Reader's Letters
Make Beijing Review your homepage
Hot Links

cheap eyeglasses
Market Avenue
eBeijing

Special> Video> Latest
UPDATED: November 23, 2009
2009 Global CEO Forum Focus on Post-Recession Economy

The past year and a half has witnessed remarkable changes in the world's economic balance. Policy makers and business leaders are now talking about the post-recession and world economy.

Zhou Xiaochuan, governor of the People's Bank of China, says a commercial bank's interest rate should not be cut too low. He cited the ongoing financial crisis, saying low interest rates will discourage banks from lending to businesses. Banks may instead turn to more profitable investments, which he says will hamper the recovery of the overall economy.

Zhou Xiaochuan said, "When we make policies at the central bank, we have to make sure that the policies will push financial institutions to serve the real economy actively. Low or even zero percent interest rates, together with low savings rate, won't give banks incentives to provide funding to the real economy. Banks will keep the liquidity to themselves because the cost is very low. In this case, banks are not helping the economy at all."

Zhou said that on BusinessWeeks' Global CEO forum. On the forum, China's transition away from a dollar-denominated world is also a key topic.

Robert Mundell is the winner of 1999 Nobel Prize in economics and is considered the "Father of the Euro". When asked if China's renminbi, has a chance of becoming a global reserve currency after the financial crisis, he said it may take decades.

Professor Robert Mundell of Columbia University, said, "Usually there are only one or two big currencies in the world. Right now, the U.S. economy is about 22 percent of the world economy. The Europe economy is about 18 percent. China is only 7 percent. So China is long way behind. Certainly China will exceed not only the Europe economy by 2030, but the U.S. economy by 2050 if China's growth continues. So in about 40 years, China may have the most strong currency in the world."

Mundell says it's still premature to talk about the Chinese RMB becoming a major world currency. But some of China's neighbors are willing to use the RMB in cross trade settlements. Traders say they readily accept the RMB for many reasons including its recent peg to the U.S. dollar, its strength, convertibility, and the low expectations of further depreciation against the dollar.

(CCTV.com November 21, 2009)


 
 

 
Latest Videos more
China's First English-Language Newspaper Readable via Computer
Chinese Courts Launch Weibo Trial Updates
China to Launch Chang'e-3 Lunar Probe in Early December
Premier Li Keqiang Visits Romania
Top Story
-Protecting Ocean Rights
-Partners in Defense
-Fighting HIV+'s Stigma
-HIV: Privacy VS. Protection
-Setting the Tone
More Latest
-China's First English-Language Newspaper Readable via Computer
-Chinese Courts Launch Weibo Trial Updates
-China to Launch Chang'e-3 Lunar Probe in Early December
-Premier Li Keqiang Visits Romania
-Premier Li's Visit to Enhance Cooperation With Romania
-Chinese Emergency Teams Start Work in Philippines
-Clean Energy and Carbon Emission Targets Still Face Challenges
Most Popular
Useful Links: CHINAFRICAChina.org.cnCHINATODAYChina PictorialPeople's Daily OnlineWomen of ChinaXinhua News AgencyChina Daily
CCTVChina Tibet OnlineChina Radio Internationalgb timesChina Job.comEastdayBeijing TravelCCNStudy in China
About BEIJINGREVIEW | About beijingreview.com | Rss Feeds | Contact us | Advertising | Subscribe & Service | Make Beijing Review your homepage
Copyright Beijing Review All right reserved