Renminbi's importance to increase

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China's Renminbi will gradually develop as an international currency though the U.S. dollar will remain the world's dominant reserve currency, said a former Chinese central bank governor Thursday.

Dai Xianglong, chairman of the National Council for Social Security Fund (SSF), told a seminar in Taipei that the international financial system will be quite different post the global economic crisis.

"The U.S. dollar will remain its dominance, but in the long term, it has a tendency to depreciation. Currencies of emerging economies, including the Renminbi, will quickly become international currencies," said Dai, who was the governor of People's Bank of China from 1995 to 2002.

Dai believed the dominance of developed economies would decrease while emerging economies caught up.

He quoted the International Monetary Fund as saying that the share of developed economies in the global output reduced from 63 percent in 2000 to 55.3 percent in 2008 while that of developing and emerging economies increased from 37 percent to 44.7 percent.

The economic growth of developed countries this year is estimated to be 2.3 percent while that of developing countries may reach 6.3 percent. Both China and India are likely to report growth of more than 8 percent, he said.

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