Daily Management Review

UK to Join China's Finance


UK could become a member of the Asian Bank, set up by China. The appropriate authorities of the country have sent a request to the Government of PRC.

Picture: bournemouth.ac.uk
Picture: bournemouth.ac.uk
However, not all British allies like such an initiative. The White House is skeptical of the possible collaboration in London and Beijing. World economists have suggested that Washington fears the competition of a new global financial institution with the World Bank and the IMF, that are in the mercy of the United States, as well as the loss of its influence over the economy and foreign policy of some countries in the Asian region.

The US said that United Kingdom’s government contacting with the PRC is the intention to adjust China with everything.
We believe that any new multilateral institution should include the high standards of the World Bank and regional development banks, and operate in accordance with them - described the US position on this issue a spokesman for the National Security Council Patrick Ventrell. - 

In view of this situation, many experts sensibly pointed out that the UK is "squeezed from both sides" - the East as well as the West.

America is still the world's largest economy. However, here in London, we realized that China and the Far East are very promising in terms of economic growth and trade opportunities. We are dealing with a bank that is considering investing $ 50 billion. This now means that China is a major player. Perhaps the Americans a little concerned, because it shows how important China is - said economist Keith Boyfield, who believes that the British in this matter have highly economic benefits for themselves.

It is also worth recalling that the Chinese authorities continue to insist on the International Monetary Fund to approve the Chinese yuan as a global reserve currency on a par with the dollar and the euro.
A senior official of China's central bank said on Thursday that China is actively negotiating with the IMF, right at the moment.

The emergence of the yuan among the world's reserve currency will demonstrate the influence of the Chinese economy and lead to the dream of the Chinese government - to reduce the dominance of the dollar in world trade and finance.

We hope for a positive outcome of negotiations with the IMF, taking into account the progress of the internationalization of RMB. Regardless of the success of these negotiations, we will see the inclusion of the yuan in the global reserve currency basket in the near future, said Ha Gang, vice president of the People's Bank of China.

At the end of 2015, the IMF is going to undertake regular decade review of reserve currencies basket.
At this point, the Chinese yuan satisfies all the requirements of the IMF, for inclusion in the list of the world's reserve currency. Therefore, this question is rather political, not economic.
At this point, the reserve currencies basket includes US dollar, Japanese yen, British pound sterling and euro.

The Chinese yuan is already used "de facto" as a reserve currency in some countries. - bbc.com