Boosting Yuan Loans: A Path to Dethrone the US Dollar
Chinese Strategy on Yuan Internationalisation
China should prioritize providing yuan-denominated debt to developing countries to bolster the global drive for de-dollarisation, according to a recent report from Renmin University.
The Case Against Relying on the Euro
Experts argue that pinning hopes on a stronger euro is misguided. The focus should be firmly on yuan assets and establishing a competitive foothold in the debt market.
- Global financial instability is exacerbated by the US dollar's dominance.
- To support the Global South, China must widen access to yuan loans.
- A mismatched currency dynamic could lead to future crises.
Navigating Challenges to Yuan Adoption
Despite the US dollar's strength, initiatives like the Cross-border Interbank Payment System and collaborations on digital currency are pivotal for enhancing the yuan’s footprint globally.
Key Developments in Yuan Globalisation
Recent agreements with countries like Thailand mark significant progress for yuan trading.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.