Jake's ViewHKMA's push for yuan as an economic pillar is puzzling
Why should a company outside of China want to accept payment in yuan for goods exported to China? Where can it find yuan to pay for imports from China?
The Hong Kong Monetary Authority's measures came as the [yuan] climbed to a 19-year high against the US dollar amid strong growth in the use of yuan for worldwide trade and investment. It is now the 13th-most used currency for international payments.
Why should a company outside of China want to accept payment in yuan for goods exported to China? Where can it find yuan to pay for imports from China?
Things are different for the US dollar. It is used everywhere to settle trade accounts. If you accept payment in US dollars you can immediately put that money to work without having to convert it into your domestic currency, and if you want to pay in US dollars you can easily raise the money anywhere.
The US dollar is so prevalent in trade that China itself reports its trade figures in US dollars and only publishes their yuan equivalents as an afterthought. This is entirely appropriate. Ask a mainland exporter to quote you a price and he will do so in US dollars. He thinks in dollars, he breathes in dollars. Why turn to yuan for something that the dollar already does superbly?