China is ramping up efforts to promote yuan as a global currency. After the crackdown on outflows and devaluation in 2015, the renminbi is once again gaining momentum.
The record share of yuan in global trade was at 2.8 percent three years ago, according to Bloomberg. Its share shrank to 1.7 percent in April, but is on the rise again. One of the reasons for that is China’s foreign reserves, the world’s biggest, have been boosted this year. Yuan also saw its biggest rally in 10 years in the first quarter.
“There will surely be more utilization of the currency in cross-border transfers this year. The exchange rate will be influenced by global financial markets more. Offshore investors will also become a more important driver for onshore bonds,” Ji Tianhe, a China rates and foreign-exchange strategist at BNP Paribas SA, told Bloomberg. – Russia Today
In addition to this, a conference last week attended by several African nations concluded that they needed to start acquiring more Yuan reserves as the continent is doing much more business directly with China than with any other trade partner.
In a well-placed interview in China’s Xinhua news – the official press agency of the People’s Republic of China – officials from Africa are seen calling for more yuanification of the massive continent’s economies.
There has been a general consensus among some eastern and southern African countries that there should be more usage of the Chinese yuan in the region because of China’s growing influence in business and trade, a financial expert said Thursday. – Silver Doctors
While it has taken nearly a decade for China to become fully prepared to both compete with, and threaten dollar hegemony, Beijing is now feeling that it is finally time for the Yuan to be the springboard to usher in the Chinese century.