Chinese Premier Wen Jiabao said it will still take time for the Renminbi (RMB), the Chinese currency, to fully become an international currency.
The status of RMB has been enhanced on the global market, but it is only convertible under the trade account, not under the capital account, he said answering questions at an entrepreneur symposium at Summer Davos in Dalian.
Wen said, "We need to have a correct view of ourselves when pushing forward the internationalization of RMB."
He said China has started to settle cross-border trade deals in RMB in Shanghai, Guangzhou, Shenzhen, Zhuhai and Dongguan.
China’s State Council, or Cabinet, announced in April a pilot program to allow exporters and importers in the five cities to settle cross-border trade deals in RMB.
CRIEnglish.com reports that Wen Jiabao said China has signed currency swap agreements with some countries with a totaling RMB 650 billion ($95.5 billion), which also helps to lay a foundation for the RMB internationalization.