Yuan's Internationalisation: Insights from Huang Qifan

Thursday, 5 September 2024, 14:00

Yuan's internationalisation is pivotal for stabilising global supply chains despite not challenging the US dollar's dominance. Huang Qifan emphasizes this at the Bund Summit in Shanghai. The yuan is expected to steadily gain share in global payments over the next decade as China's economy opens up further.
South China Morning Post
Yuan's Internationalisation: Insights from Huang Qifan

Understanding the Yuan's Global Standing

The internationalisation of the yuan is crucial for ensuring stability in the global supply chain. Huang Qifan shared insights on this at the Bund Summit in Shanghai, stating the increasing use of the yuan is inevitable as China’s economy continues to open.

Reaching for Greater Economic Heft

  • The yuan’s global share in payments is projected to rise by 1 percentage point annually over the next decade.
  • Despite recent gains, the yuan's current internationalisation index of 3.26 significantly trails behind the US dollar's 57.68.

Promoting Financial Power: A Balanced Approach

President Xi Jinping aspires to elevate China as a financial power. However, Huang cautioned against unrealistic ambitions to replace the US dollar. Instead, he noted China’s focus on maintaining the stability of the global industrial chain.

  1. Enhancing the yuan's use in cross-border transactions should be a priority.
  2. China aims for the yuan to account for 17% of global payments by 2035.

With plans to expand offshore yuan markets in financial hubs like Hong Kong and Singapore, the path towards full capital account convertibility remains tied to the yuan's international status.


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.


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