Having a fully convertible currency means that it is able to be traded on the foreign exchange market with few restrictions. Trade involving the Chinese yuan, or renminbi however, still has many restrictions placed on it by the Chinese government and neighboring countries as well.
Many big steps have been taken in the last year, and more recently though, to move the yuan in the direction of a freely traded, fully convertible currency. For example, Bank of China Ltd. just had its request to bring yuan it collected in Hong Kong back to mainland China. And according to the head of the IMF's Asia and Pacific department, people in Beijing are beginning to understand that both exchange rate flexibility and allowing the yuan to appreciate more quickly against the US dollar, will be necessary to control inflation in China and essential for their economy's continued growth as a major player in the global marketplace.
James J Puplava just interviewed legendary investor, Jim Rogers on the Financial Sense® Newshour about this subject and other economic news closely related to it.
To listen - CLICK HERE!
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