Beijing urged to offer more yuan loans overseas to help dethrone US dollar
National Academy of Development and Strategy says China should be main source of liquidity for developing countries
China should focus on providing yuan-denominated debt financing to developing countries to accelerate the global de-dollarisation drive, rather than pinning hope on a strengthening euro, a Beijing-based think tank said on Thursday.
The call from Renmin University’s National Academy of Development and Strategy came amid discussions in academic and policy circles in China about possible responses to what is likely to be a more hawkish United States’ government – irrespective of whether Donald Trump or Kamala Harris wins Tuesday’s presidential election.
“The most fundamental front of the yuan replacing the US dollar should be in the debt market,” said Fan Zhiyong, a Renmin University professor who presented the think tank’s research report at a seminar in Beijing.
“China needs to become a predominant source of liquidity for developing countries in the world’s debt market.”
“The US dollar being used as a weapon has imperilled global financial stability, setting off a wave of de-dollarisation among Global South countries,” he said.
