Chinese economist Fan Gang, the Director of the National Economic Research Institute, offers his thoughts on Renminbi liberalization and the lessons he believes Chinese banks should draw from the financial crisis.

 

   

That was economist Fan Gang, the Director of the National Economic Research Institute, giving his thoughts on the liberalization of the Renminbi and offering advice to Chinese banks.

Questions:

1. The State Council has recently announced the use of yuan to settle cross-border transactions on trial basis in five Chinese cities. Some sees this an important step in making yuan a more international currency. What's your opinion?

2. China hopes to have a bigger say in the international financial system. Central Bank Governor Zhou Xiaochuan recently proposed to establish a super-sovereign reserve currency ahead of the G20 summit. How do you see this proposal?

3. Chinese banks basically remain intact from the impact of the financial crisis thanks to their limited exposure to the international financial market and the prudent attitude China's financial watchdog has been taking. But what lessons should Chinese banks learn from the crisis?