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China's capital account is far more convertible than outsideinstitutions believe, and now is a good time for China to make theyuan freely convertible, the top Chinese securities regulator said. Guo Shuqing, Chairman of the China Securities Regulatory Commission(CSRC), delivered a speech with one of its focuses on China'scapital account convertibility at the International Organization ofSecurities Commissions (IOSCO) Annual Conference Wednesday inBeijing. China's achievements in the capital account convertibility havebeen evident over the years, said Guo. According to Guo, 16 items in China's capital account areconvertible, 17 are "basically" convertible and seven are"partially" convertible. "There is no item that is inconvertible," said Guo."China's capital account is actually far more open than isassumed under the estimations of various institutions such as theInternational Monetary Fund (IMF)." Guo stressed that there is no absolute and unchangeable standardfor use in measuring the openness of capital accounts. "Countries in different phases of development must make theirown analyses in accordance with their own methods of opening up andtheir own situations," he said. "It is necessary to becareful about the notion of 'fully free' convertibility.Convertibility under capital account doesn't mean there will be nocapital control, no matter in any nations." After the financial crisis, majority countries have reached aconsensus to adopt a temporary method in capital control whenimperative, and it should be regarded as an important principle inrestructuring the international financial system, said Guo. "Inaccurate notions from the past should be rectified as soonas possible," he said. As for pushing forward the yuan's convertibility under the capitalaccount, Guo said that current conditions are quite favorable forChina to make the yuan freely convertible. "Making the yuan a fully convertible currency is not onlybeneficial to China's economic and social development, but alsobound to make a huge contribution to restructuring internationalfinancial system and improving global economic order," saidGuo. Beijing took a milestone step in liberalizing its currency regimelast month, doubling the daily onshore trading band for the yuan to1 percent, taking the country one step closer to its goal ofachieving full convertibility of the yuan by 2015. I am an expert from watersoluble-fertilizer.com, while we provides the quality product, such as Cotton Meal Fertilizer Manufacturer , China Soluble NPK Fertilizer, Cotton Meal Fertilizer,and more.
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