China is vowing to make more reforms, among them cutting red tape and establishing the yuan as a world currency. The 7th Annual Meeting of the New Champions is opening in the Chinese city of Dalian, the gathering has become known as a ‘summer Davos’. RT has talked to Dr. Pattberg about China’s prospects for introducing a new world currency.
Here is an excerpt of the interview on RT.
RT: Do you think when China says it wants to make the yuan a global alternative to the dollar, is there any possibility of that happening at some point?
Thorsten Pattberg: Yes, it’s perfectly reasonable to think that the Chinese want to see their currency become the next world currency, there’s a plan. And of course China at the moment is purchasing more and more gold, this also plays into this. We heard they recently purchased several hundred tons of gold through Hong Kong, the trading hub. And of course if you hoard gold like a dragon, this is a lot about prestige. The mere presence of gold in your country gives rise to even more self-confidence and to this bling-bling sensation that China is really up to something. The mere intention to buy more gold in the future will certainly have an impact on the rise of gold prices in the world. So China is taking a leap forward to control the world currency and to replace it with yuan.