Strong Growth Need to Promote Yuan Internationalisation - Guan Tao

China needs to ensure a strong domestic economy, improve financial supervision, and reform institutional opening-up to promote the long-term international use of the yuan, reports Shanghai Securities News citing Guan Tao, a former senior State Administration of Foreign Exchange official. The yuan is increasing its standing as a major international currency due to its market-oriented exchange rate and recent resilient performance, the paper said. The use of the yuan in global foreign exchange reserves is set to surpass sterling and the yen due to relaxed restrictions on outbound investment in the yuan bond market, the report noted, citing Michael Spencer, chief economist at Deutsche Bank Asia Pacific.