S Korean economist: China's yuan may be Asia's settlement currency

Special Report: Global Financial Crisis

SEOUL, May 5 (Xinhua) -- A senior South Korean economist said in a report on Tuesday that the Chinese currency yuan may emerge as a settlement currency in Asia.

"Trade volume between China and other Asian countries is huge. If the yuan is used as a settlement currency in the region, the need to hold the U.S. dollar will decrease for Asian countries," said Park Bun-soon, a senior fellow at the Samsung Economic Research Institute.

However, he said it will take time for the Chinese currency to be a global reserve currency.

"Although the overwhelming influence of the U.S. economy is falling, it won't be easy for any currency to challenge the established reserve currency," he said.

Park said although the yuan may not become the key currency, it could be recognized as one of the major international currencies like the dollar and the euro after 2030 when the size of the Chinese economy is expected to surpass that of the U.S.

HK foreign-currency reserves up $7.1 bln in April

Special
Report: Global Financial Crisis

HONG KONG, May 7 (Xinhua) -- Hong Kong's official foreign- currency reserve
assets rose to 193.4 billion U.S. dollars in April, up 7.1 billion U.S. dollars
on March, the Monetary Authority of Hong Kong said on Thursday.

Including unsettled forward contracts, foreign currency reserve assets
stood at 194 billion U.S. dollars. The total foreign-currency reserve assets
represent about eight times the currency in circulation, or 45 percent of Hong
Kong dollar M3.

Hong Kong is the world's seventh largest holder of foreign currency
reserves, after the Chinese mainland, Japan, Russia, China's Taiwan, India and
South Korea.

Zimbabwe: Yesterday's trillionaires can't afford favourite drink

A man holds the new Zimbabwe currency specimen, Feb. 2, 2009. Zimbabwe's central bank revalued its dollar again, lopping another 12 zeros off its battered currency to try to tame hyperinflation and avert total economic collapse Tuesday.(Xinhua/AFP Photo)
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BEIJING, Feb. 3 (Xinhuanet) -- Zimbabwe's central
bank revalued its dollar again, lopping another 12 zeros off its battered
currency to try to tame hyperinflation and avert total economic collapse
Tuesday.

The crisishas been worsened by political
stalemate, but the opposition last week agreed to join a coalition government,
raising prospects the economy could be saved from further ruin.

The southern African country is battling the world's
highest inflation rate, officially put at 231 million percent, and acute
shortages of food and foreign exchange.

Reserve Bank of Zimbabwe Governor Gideon Gono
announced the new currency moves on Monday, adding that some foreign exchange
controls will be relaxed and gold producers now can sell bullion directly and
not to the central bank as in the past.

"This Monetary Policy Statement unveils yet another
necessary program of revaluing our local currency, through the removal of 12
zeroes, with immediate effect," Gono said in his MPC statement.

"Yesterday's trillionaires, I am sorry, will not be
able to buy their favourite drink today," said Gono.

"His statement does contain some positive measures
but it does not go far enough. It would appear he is trying to restore the
Zimbabwean dollar, but given the choice of multiple currencies, who would want
to trade in Zimbabwe dollars?" John Robertson, a leading Harare-based economist
said. 

(Agencies)

Photo taken on Jan. 16, 2009 shows a specimen of the old Zimbabwe currency of one hundred trillion dollars. Zimbabwe's central bank revalued its dollar again, lopping another 12 zeros off its battered currency to try to tame hyperinflation and avert total economic collapse Tuesday.(Xinhua/AFP Photo)
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