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this may work regionally but not globally
[quote=”Super Harley” post=2466]I think at this point it’s more about using it for oil etc and they equate it with power[/quote]lets not forget that the IMF’s special drawing rights (SDR) basket added the yuan, also known as the renminbi in 2016, but it doesn’t even really meet the requirements as a reserve currency.[hr]
People’s Bank of China Governor Zhou Xiaochuan added to the debate last week, when he called for the country’s foreign exchange rate to be more market-based and capital controls to be relaxed in order to allow greater opening of the economy. The comments, made in an interview with the Chinese financial magazine Caijing.[hr]
Yuan exchange rates will have a more stable foundation after the 19th National Congress of the Communist Party of China and the market will have a bigger role in determining the currency’s value, a top central bank official said on Wednesday.
The People’s Bank of China, the central bank, has almost withdrawn its “regular” intervention in the foreign exchange market, Pan Gongsheng, head of the State Administration of Foreign Exchange, said while attending the congress.
“We can also see that the exchange rate is more market-driven and has been more stable recently,” said Pan, who is also a deputy governor of the central bank.
The central bank released a report on its website on Tuesday saying that the bank will continually facilitate the yuan’s internationalization to reflect a more stable position in the global monetary system.
The PBOC also expects yuan usage to rise so that it can play a more important role as a global reserve currency.
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