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Global use of China’s yuan up sharply, beating pound and yen on internationalisation index
- Overseas use of Chinese renminbi is ‘robust’ compared to other key currencies thanks to pivotal role in supply chains, study finds
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Overseas use of the Chinese yuan grew significantly last year due to its pivotal role in global supply chains and continuous high-quality economic development, according to a new study.
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The yuan internationalisation index, which aims to track how the Chinese currency performs globally, showed year-on-year growth of 22.9 per cent in 2023, according to a report released by Renmin University on Saturday.
“As the quality of a country’s financial system rises in the process of servicing global supply chains, the foundation for using its currency will be cemented,” it stated.
“The yuan’s internationalisation was still robust when compared to other key currencies, even though China’s trade with other countries was suppressed amid a difficult external environment.”
China has been trying to increase global use of the yuan in a steady and prudent manner as the country improves management and risk prevention in cross-border capital flows.
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The report gave an average internationalisation score of 6.27 for the yuan last year, while the US dollar stood at 51.52 in the same period and the euro earned a 25.03 on the index. A higher score reflects a higher degree of internationalisation, but the study did not say what the maximum score is.
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