China Watch Blog

China Watch Blog has learnt that China’s efforts to make the yuan a global currency may be hampered by the lack of an independent monetary policy, fragile domestic financial markets and an “unbalanced” economy, a report edited by an adviser to the nation’s central bank warned.

“In the process of yuan internationalization, it will be hard to gain the confidence of the international community in the value of the yuan if monetary policy lacks sufficient independence,” according to the report, edited by Chen Yulu, from the International Monetary Institute of Renmin University in Beijing.

Chen is an academic adviser to the People’s Bank of China and president of the university, the Shanghai Daily reported.