China intends to carry out red herring issue of bonds in SDRs

Almaty. April 4. Silkroadnews - At the financial forum in Paris the head of China’s Central Bank Zhou Xiaochuan said about the expansion of the use of special drawing rights (SDR), the newspaper “People’s Daily” reports.

Zhou Xiaochuan said the special drawing rights could be a stabilizing factor in the international monetary system, and China will expand its use.

It is reported that China will soon publish data on foreign exchange assets of the banking sector in terms of SDR and US dollars, including the information on foreign exchange reserves. In addition, China is willing to make a test bond issue of SDRs.

Zhou Xiaochuan said earlier at the Boao Forum for Asia that the increasing use of SDRs and reducing dependence on the US dollar are the overall appeal of the international community, and China as the host of this year’s G-20 has already restored the activities of the working group on international financial architecture to support this issue discussion.

That day at the forum the IMF Managing Director Christine Lagarde pointed out that the use of the SDR is closely related to the prevention of financial risks and strengthen the international monetary system. In the coming months the IMF will discuss the issues with the countries interested in the SDRs use.

She noted that against the background of the emergency of new risks to the stability of the international currency system, the Chinese government has taken the specific steps in monetary policy and made a great contribution to the stabilization of the global economy.