China could dismantle currency controls by 2020 as it is striving to make the yuan a global currency, Bloomberg reports.
Chinese officials will discuss a possible commitment to “make the yuan convertible under the capital account,” a person familiar with the relevant talks told Bloomberg on Thursday.
According to Bloomberg, China has been trying to boost global yuan usage ahead of an International Monetary Fund (IMF) review of its reserve-currency basket, scheduled for next month.
Last month, Chinese President Xi Jinping said that the Chinese government will continue to enact reforms concerning the currency’s exchange rate.
According to Xi, China’s economy is turning toward “quality growth rate,” and the country’s gross domestic product (GDP) is expected to grow at medium to high rate.
Stocks in China have experienced a large-scale sell-off and volatility since early July. The situation culminated in the largest single-day losses in the history of the Chinese stock exchange in August.
In July, the People’s Bank of China allowed the yuan to fall 1.9 percent against the US dollar to boost the country’s economy.
Caixin Insight Group, a financial data and analysis platform, said in August that China’s economy could start to rebound within the next few months.