China's ex-c.bank chief sees yuan global in 15 years

BEIJING Wed Nov 9, 2011 4:53am EST

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BEIJING Nov 9 (Reuters) - It could be another 15 years before China's yuan becomes a major reserve currency accepted and traded all over the world, former People's Bank of China governor Dai Xianglong said on Wednesday.

"The Chinese yuan will be used to settle many trade deals in the coming two or three years; will be used as an investment currency in the coming five to 10 years; and to become a major reserve currency after three five-year periods," Dai told an international financial forum in Beijing.

Dai, now the chief of China's state pension fund, said the Chinese yuan -- also known as renminbi -- will eventually gain global clout befitting the country's status as the world's second-biggest economy.

Beijing is trying to give a bigger international role to its currency, which is not fully convertible yet, by promoting the use of yuan in cross-border trade settlement and investment, especially with its offshore yuan trading centre Hong Kong.

China's government is unhappy that the international currency system is so dollar-dominated at present.

Dai said a truly international currency would help China stand tall in global financial markets and encourage development of homegrown international banking and financial expertise.

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