China can boost yuan’s international role, says report

Despite the increasing use of the currency globally, concerns about its convertibility and the country’s exchange controls linger

The yuan is far behind the US dollar and euro in a rating of the currency’s ‘internationalisation’ by Renmin University

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The US dollar remains in wider use internationally compared with the yuan. Photo: Shutterstock

Published: 11:00pm, 23 Jul 2023Updated: 9:37am, 25 Jul 2023

China has the opportunity to boost the yuan’s international role compared with currencies such as the US dollar and euro, according to a new report.

Countries, such as Argentina, Brazil and Russia have started using the yuan more in trading with China, but scepticism about the renminbi’s stability and convertibility, as well as China’s capital controls, remains strong.

A report from Renmin University measuring the currency’s “internationalisation” – based on its use in international trading, foreign exchange reserves and transactions – found that the yuan had a score of just 6.4 out of 100 last year.

Although this was the yuan’s highest to date, it was well behind the dollar and euro which stood at 50.5 and 25.16, respectively.

We should also strengthen exchanges with developed countries in low-carbon economic transformation and green financial development

Renmin University report

In June the yuan also ranked fifth in Swift’s global payment list with a 2.77 per cent share – well behind the US dollar on 42 per cent or the euro on 21.25 per cent.