The role of the yuan will be augmented next year following implementation of the China-Asean Free Trade Area, creating a market of almost 2 billion people, Bank of Thailand Governor Tarisa Watanagase told The Nation in a special interview. Asean statistics show the trade value between the regional grouping and China increased from US$59.6 billion (Bt1.98 trillion at today’s rate) in 2003 to $171.1 billion in 2007, a growth rate of about 30 per cent a year.

The centralbank chief was quick to add that the increasing role of the yuan will be gradual, as China still had to meet several challenges – from allowing its currency to be fully convertible and liberalising its financial markets to improving transparency in its rules and regulations.

Dollar downtrend send asian currencies to the top
Dollar downtrend send asian currencies to the top

“We expect to see more yuandenominated transactions next year after the introduction of the freetrade area between China and Asean,” said Tarisa.”The freetrade area provides opportunities and challenges for us. Instead of dealing with only a Thai market of 67 million people, we can have a larger market of 600 million people in Asean and close to 2 billion people in Asean and China combined.”

via More yuan denominated transactions in Asean-China FTA

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Economic slowdown may prompt reluctant reform in China

Xi took China’s achievement of long-term economic growth to mean that market reform was no longer necessary and began to prioritise political control over economic efficiency

What No COVID-Zero in China Could Mean for Vietnam

Unlike China, however, Vietnam implemented an aggressive vaccination campaign. It reached out around the world seeking donated vaccines and set about inoculating its population.