Central bank chiefs from China, eastern Europe discuss closer cooperation between ‘new power centres’
- People’s Bank of China boss Yi Gang attends first 16+1 China-CEEC Central Bank Governors’ Meeting in Budapest
- Nations have ‘in depth’ discussions on possible use of yuan as a foreign exchange reserve currency
Central bank chiefs from China and 16 eastern European countries discussed the development of closer economic ties and the possible future use of the yuan as a foreign exchange reserve currency on Friday at a new financial summit in Budapest.
According to a statement by the People’s Bank of China (PBOC), Yi Gang, its governor, conducted “in-depth” discussions with his European counterparts about Chinese and central European economic development, the role of yuan in foreign exchange reserves and central bank cooperation. It did not elaborate.
Speaking at the opening ceremony of the 16+1 China-CEEC Central Bank Governors’ Meeting, Hungarian Prime Minister Viktor Orban said that “a new multilateral economic world order is emerging is emerging and China is the first of the new power centres”, according to a statement on the Hungarian government’s website.
The second power centre comprised central and eastern European countries, he said.
Beijing has been keen to boost its presence in the European Union’s backyard by developing greater trade and investment links with the region, a move that has raised eyebrows from Berlin to Brussels.
Orban said also that China would be a major player for a long time to come and that its currency, the yuan, “had to be reckoned with”. Countries should prepare for a future world when the “[US] dollar has lost its monopoly”, he was quoted as saying.