China will promote yuan’s internationalisation, central bank says
BEIJING (CHINA) – China, which is gunning for the internationalisation of its yuan, will make it easier for global investors to use the currency to invest in Chinese bonds and stocks, said the central bank on Friday. This comes amid rising tensions with the US.
The People’s Bank of China said in its 2020 yuan internationalisation report: “In the future, we will continue to steadily promote the yuan internationalisation to serve the real economy, based on market principles.”
There are fears in China of a deepening financial struggle with the US and it has stoked demands to boost the global clout of yuan as Beijing is looking at options to slash its reliance on the dollar.
Beijing will also promote the development of offshore yuan markets.
The report says that the central bank expects the yuan to play a bigger role in pricing and settling commodities trade, which includes crude oil and iron ore.
The bank said cross-border yuan settlements reached 19.67 trillion yuan (2.16 trillion pounds) in 2019, registering a rise of 24.1% from a year earlier.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field