Chinese yuan can become a new global currency

Beijing. March 12. Silkroadnews - The Chinese yuan is ready to play a global role in the world economy, Xinhua News Agency writes.
As China plans to further open up its market and promote free global trade and investment, the yuan is expected to play a greater global role, the publication reads.
The country has already implemented most of the steps to expand use of the renminbi throughout the world, the head of the central bank, Zhou Xiaochuan said.
In 2009, the yuan started to be used in cross-border trade, in 2016, the IMF included the yuan into the basket of currencies that make up the Special Drawing Right, an alternative to the US dollar.
Since late 2008, China has concluded bilateral currency swap agreements with more than 30 countries and regions to promote cross-border trade and investment.
Data by the international agency for financial transactions SWIFT showed, around 1.66% of global payments made in January were denominated in yuan.
In January, the central bank of Pakistan accepted the yuan as a currency for trade with China. Central banks in European countries, including France and Germany, included the yuan in their foreign exchange reserve.
Crude oil futures in Shanghai will use the yuan when pricing for commodities.
According to Cao Yuanzheng, chairman of BOCI Research, the Belt and Road initiative will become a powerful force pushing the global use of the renminbi, as it enhances the cross-border use of the Chinese currency.
About 60 percent of the surveyed 3,000-plus overseas firms and financial institutions mulls using yuan or increasing its usage, the report says.
As SWIFIT notes, the use of the yuan on digital platforms is growing rapidly, as Chinese mobile payment platforms, such as Alibaba’s Alipay and Tencent’s WeChatPay, continue to expand their services.
According to Cao, foreign companies are increasingly using Chinese yuan. The use of the yuan in trade and investment will make it easier and cheaper for foreign companies to do business with China, while incorporating the yuan into investment portfolios will help optimize the structure of investments and return.
The rise of the yuan will bring about a more balanced and diverse international monetary mechanism and reduce risks from over reliance on one currency and geopolitical uncertainties, the agency cited Cao saying.