by Chen Zhi
August 25, 2012
from
News.XinhuaNet Website
BANGKOK, Aug. 25 (Xinhua)
China's currency could be eventually used as an
alternative to the U.S. dollar and Euro by southeast Asian countries,
experts said.
Phathanaphong Phusuwan, a senior official of the Bank of Thailand,
said in a seminar on Thai-Chinese trade, investment and finance relations on
Saturday that the yuan would likely be used more between China and ASEAN
member states in the long run.
In the panel discussion co-hosted by the National Research Council of
Thailand, Huaqiao University and the Thai-Chinese Culture & Economy
Association here, the official of the Thai central bank commented the
Chinese currency could possibly replace the U.S. dollar and Euro when it
comes to trade, financial and money-exchange dealings throughout
the ASEAN
community, due in part to the unresolved economic and financial problems in
the United States and the European Union.
"In the long run from 2015 onwards, trade
with Asia will largely increase under the ASEAN-China Free Trade Area
agreement, which will influence the use of the Yuan and the local
currencies.
The Yuan is then a good alternative for the
international trade in the future," said the official, referring to the
year in which the regional bloc will become an ASEAN Economic Community.
Nevertheless, he said, the role of the Chinese
currency in Thailand and other ASEAN states will remain limited in the short
and medium terms.
Thai merchants have increased their use of the Yuan in trade, following the
easing of restrictions by the Chinese government, he said. A dozen Thai
commercial banks and foreign banks' branches here currently offer Yuan-based
services, including foreign currency deposits, money exchange, fund
transfers and purchases of Chinese banknotes.
The Chinese currency has accounted for 10.8 percent of China's trade
dealings with the world during the first half of this year, according to a
report of the Thai central bank.
Professor Ridong Hu of Huaqiao University's College of Economics and
Finance remarked in the seminar that last year's total trade between China
and Thailand amounted to 64.7 billion U. S. dollars, 22.3 percent increase
over the previous year, turning Thailand into China's second largest trading
partner in the regional bloc.
Thailand plays a leading role in promoting integration of the Asian economy
as well as serves as a link and helps in the development of strategic
partnership between China and ASEAN, the Chinese academic said.
Asst. Prof Kai Yuan of Huaqiao University's School of Law described
the Sino-Thai trade and economic cooperation as a win-win option for both
sides and that such bilateral relationship is the touchstone of success for
trade, investment and financial sectors under the China-ASEAN Free Trade
Area treaty.
