China Aims to Boost Yuan's International Use to Counter Potential Western Sanctions
China is pushing for more international use of the yuan to reduce the impact of potential Western sanctions, such as in a military conflict over Taiwan. Expanding yuan use in trade is less challenging than making it a major global reserve currency, according to a researcher. Countries are diversifying from dollars due to fears of being cut off from the financial system by sanctions like Russia. A lack of yuan-denominated risk-free assets closed capital markets, and a preference for one-man rule hindered the yuan's replacement for dollars. A recent global survey found little interest in yuan use for trade due to a lack of trading partner acceptance.
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00:00 It's Benzinga and here's what's on the block.
00:02 China is pushing for more use of the yuan internationally to reduce impact
00:06 from potential western sanctions like in a military conflict over Taiwan.
00:10 Expanding yuan use in trade is less challenging than making it a major global reserve currency,
00:14 according to a researcher. Countries are diversifying from dollars due to fears of
00:19 being cut off from the financial system by sanctions like Russia. Lack of yuan-denominated
00:24 risk-free assets, closed capital markets, and preference for one-man rule hinder the
00:28 yuan-replacing dollars. Recent global survey found little interest in yuan use for trade
00:32 due to lack of trading partner acceptance. For all things money visit Benzinga.com