Financial expert Zhao Haikuan urged the Chinese banking system to adopt a positive attitude and take necessary measures to accelerate the pace of creating the conditions for RMB to become one of the hard currencies in the world.

Zhao Haikuan, honorary president of the monetary institute of the People's Bank of China and president of the Chinese Society for Monetary Studies, made the call at a panel discussion on the ongoing fifth session of the Ninth National Committee of the Chinese People's Political Consultative Conference (CPPCC).

Zhao said that with the rapid growth of the economic strength of China and China's accession to the WTO and its active involvement in economic globalization, it is possible that Renminbi would become one of the world currencies.

A unified world currency is unlikely, at least in the foreseeable future, the financial expert said. The current situation with several paper currencies serving as world currencies will continue.

He said that the economic base for Renminbi is fast growing and China is implementing firmly its prudent monetary policy and succeeded in maintaining the value of Renminbi stable in the Asian monetary crisis, thus winning a high reputation in the world.

He noted that, with the acceleration of reform, the banking system can certainly undertake the mission of making Renminbi a hard currency.

He urged efforts to step up the process of making Renminbi convertible under capital account and encourage the use of Renminbi in foreign trade and other economic activities, lift the restrictions on outflow of Renminbi and set up a regulatory system concerning Renminbi circulating overseas.

It is a natural process of development for a local currency to become global, he said, adding that China should exert itself to drive this process forward and it must start now.

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