G20 must introduce currency reforms, says Chinese official

The G20 should establish a secretariat dedicated to promoting reform in the international monetary system, the head of China’s national pension fund said on Sunday, Reuters reported. Dai Xianglong, chairman of China’s US$130 billion National Council for Social Security Funds, said that the US dollar’s position as the world’s major reserve currency is slowing currency flow. “China is the largest creditor in the world, so the renminbi is naturally in the position to become internationalized,” Dai said during a meeting for the China Center for International Economic Exchanges. He added that the renminbi is stable and increasingly used in cross-border trade. Dai’s comments come amid Chinese efforts to boost the profile of the renminbi as an international reserve currency to rank alongside the American dollar.