FRANKFURT (MNI) – The international monetary system is on the verge
of becoming a “tripolar” system, with the Chinese renminbi serving as
an anchor for Asian exchange rates, the European Central Bank said
Wednesday.
In a study as part of its annual report on “The International Role
of The Euro,” the ECB said empirical evidence showed the reniminbi was
already playing a role as an anchor for exchange rates in Asia, though
it had yet to take up a major role on the international level.
“To some extent, the international monetary system is already on
the verge of becoming tripolar when it comes to international currencies
acting as exchange rate anchors at the regional level,” the report said.
“This may not yet be the case when it comes to other aspects of
international currency use – not least owing to the fact that China’s
capital account remains largely closed, which in turn limits the
international use of the renminbi.”
The report said new studies of history – in particular the pace of
the dollar’s rise over the British pound – suggest “a transition to a
multipolar system could, therefore, occur sooner than is sometimes
asserted.”
— Frankfurt bureau: +49 69 720 142; email: ccermak@marketnews.com
[TOPICS: M$$CR$,M$$EC$,MI$$$$,M$A$$$]
