Free Trial
JGBS AUCTION

40-Year Supply Passes Smoothly

JGBS

40-Year Auction Results

AUD

Moderately Firmer, Respecting Ranges

US TSYS

Little Changed Through Asia

JGBS AUCTION

PREVIEW: 40-Year JGB Supply Due

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

MNI INTERVIEW: Trade Lifts Use Of Yuan As Reserve Currency

MNI (Singapore)
(MNI) Beijing

Use of the yuan outside China is being boosted by a new industrial chain expanding in the wake of the invasion of Ukraine.

True

The growth of China’s yuan as a reserve currency is being driven by its use in a developing industrial chain based on cheap Russian raw materials and southeast Asian labour, as the yuan will not be completely convertible for the foreseeable future, one of the country’s most prominent experts on the subject told MNI.

War in Ukraine has diverted more Russian energy and commodities towards a chain forming between the booming downstream labour-intensive industries of southeast Asia and China’s large market and developed industrial base, with the yuan as the settlement currency of choice, said Cao Yuanzheng, chairman of BOC International Research.

Keep reading...Show less
623 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

The growth of China’s yuan as a reserve currency is being driven by its use in a developing industrial chain based on cheap Russian raw materials and southeast Asian labour, as the yuan will not be completely convertible for the foreseeable future, one of the country’s most prominent experts on the subject told MNI.

War in Ukraine has diverted more Russian energy and commodities towards a chain forming between the booming downstream labour-intensive industries of southeast Asia and China’s large market and developed industrial base, with the yuan as the settlement currency of choice, said Cao Yuanzheng, chairman of BOC International Research.

Keep reading...Show less