2012-09-13

Yuan could be convertible by 2015

but probably not.

China to 'allow full yuan convertibility' by 2015
China will probably take the groundbreaking step of making the yuan a fully convertible currency as early as 2015, former central bank governor Dai Xianglong said.

"If nothing unusual takes place, there will be a breakthrough in three to five years," Dai said in a panel discussion at the World Economic Forum in Tianjin yesterday, referring to the liberalisation of the country's capital account.
If everything goes smoothly, the yuan might be convertible by the end of that time frame, around 2017. A crisis could force convertibility much earlier, since a crisis could cause losses and volatility regardless of the currency policy. Convertibility could be used to cool a crisis because it would protect foreign reserves, if for example there was a run on the renminbi.

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