China's mega Silk Road project hits road blocks


Sharp depreciation of yuan coupled with neighbours' suspicions are "holding back" China from the full rollout of its mega Silk Road project, prompting the country's think tanks to term the ambitious initiative as a "high risk project". 

The depreciation of yuan late last year raised the cost of currency settlement for Chinese firms conducting overseas businesses, Chu Yin, an associate professor at the University of International Relations here said.

"The use of the yuan as a settlement currency overseas is a problem as the government is very cautious to take bold steps out of fear of shorting the yuan in the offshore market," Chu was quoted as saying by Hong Kong-based 'South China Morning Post'.............Read more

 

Source: The Economic Times


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