China’s SAFE: Yuan set to see a bigger global role

The Chinese yuan’s significance in global trade and investment is set to rise dramatically, as the coronavirus pandemic seemingly diminishes the US dollar’s attractiveness in the international monetary system, Ding Zhijie, Head of a research center at China’s State Administration of Foreign Exchange, forex regulator, said over the weekend.

Key quotes

“Whether you look at interest rates or exchange rates, yuan assets have clear advantages now [against assets denominated in other currencies].”

“The yuan’s depreciation cycle since the summer of 2015 had failed to create any financial crisis in China, and it showed that the yuan, also known as the renminbi, was not typical of a developing country currency but one with “the basic characteristics of an international currency.”

“An internationalized yuan would help China to be finally secure.”

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