Despite the slowdown of economic growth rates, the Chinese authorities still plan to put its national currency to the global financial markets. This is confirmed by the fact that the yuan tries to get in the IMF’s official basket of reserve currencies. Currently, the Chinese law limits the movements of the yuan and other currencies beyond the country. China’s national currency moves in and out the country only within the Shanghai free trade zone (FTZ). However, this year China intends to use the renminbi in the FTZs nationwide because of reforms implemented in financial system. The first regions to test financial easing will be Guangdong, Fujian and Tianjin. The further implementation of the reform in the national currency conversion depends on the efficiency of these testing grounds. If this proves to be successful, the scheme will be adopted in other China’s regions. Such changes will improve the conditions of the yuan conversion. The former scheme of the currency corridor is of no use now. Earlier, when the yuan was exchanged to the US dollar, the currency ratio should have been not more or less than 2% of the exchange rate of the Chinese central bank. After the process of the renminbi liberalization comes to the end, the yuan may be included in the IMF basket along with the euro, yen, US dollar and pound that are already in it.
