(This article is the courtesy of the Shanghai Daily News)
Yuan joins elite club of reserve currencies
THE yuan’s inclusion in the International Monetary Fund’s elite reserve currency basket on Saturday was hailed by Chinese businesses and analysts as a “historic moment.”
“Ten years ago, the yuan could hardly go out of the country. But now China’s opening-up and huge economic size has made it more and more popular in the international market,” said Lu Jian, vice president of Guangdong Guangken Rubber Group Co Ltd.
Early this year, Guangken Rubber launched a US$270 million bid for Thailand’s Thai Hua Rubber, the world’s third-largest rubber producer.
The company then sought loans from domestic and overseas banks, with some offering to fund its bid in yuan.
The acquisition in yuan helps reduce foreign exchange risks as well as fund-raising costs, said Lu.
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