Wednesday, October 5, 2011

YY - China’s Bad Debtor

China’s Bad Debtor
Yu Yongding

"Yu Yongding, currently President of the China Society of World Economics, is a former member of the monetary policy committee of the Peoples' Bank of China and former Director of the Chinese Academy of Sciences Institute of World Economics and Politics."


"...Furthermore, China should be allowed to convert part of its foreign-exchange reserves into assets denominated in the International Monetary Fund’s special drawing rights (SDRs). Of course, China should not rule out the possibility of adjusting the composition of its foreign-exchange reserves to mimic the composition of the SDR. 
Finally, if the US government cannot safeguard the value its securities, it should compensate China in one way or another. Only then can China and the world be certain that America’s irresponsible attitude – “the dollar is our currency, but your problem” – has become a thing of the past."

[Mrt: Just love the accidental word play :o)]


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