The Daily Telegraph

Top Chinese banker Guo Shuqing calls for wider use of yuan
The Daily Telegraph

The head of China’s second-largest bank has said the United States government should start issuing bonds in yuan, rather than dollars, in the latest indication of the increasing importance of the Chinese currency.

Guo Shuqing, the chairman of state-controlled China Construction Bank (CCB), also said he is exploring the possibility of issuing loans to trading companies in yuan, allowing Chinese and foreign companies to settle their bills in yuan rather than in dollars.

Mr Guo said the issuing of yuan bonds in Hong Kong and Shanghai would help to develop the debt markets in China and promote the yuan as a major international currency.

Thomas Geissler, who owns the company behind the idea, said: « German investors have always preferred to hold a lot of personal wealth in gold, for historical reasons. They have twice lost everything. « Gold is a good thing to have in your pocket in uncertain times. »

It was the first time the head of a major Chinese bank has called for the wider use of the yuan, although a chorus of senior government officials have already voiced their concerns about the stability of the dollar and have said the yuan should be used more widely.