Bundesbank board member Andreas Dombret revealed on Monday that the bank has decided to include China’s yuan in its reserves, adding to a string of recent news reflecting the currency’s increasing prominence on the world stage.
“The notable development from the European point of view over the past few years has been the growing international role of the RMB in global financial markets,” Dombret was quoted by the Financial Times as saying Monday.
“The renminbi is used increasingly as part of central banks’ foreign-exchange reserves — for example, the ECB included the RMB but also other European central banks did so,” Dombret said during his speech at the Asian Financial Forum in Hong Kong.
Bundesbank board member Joachim Wuermeling added in email comments on Monday that “the decision to accept the yuan is part of a long-term diversification strategy and reflects the increased role of the Chinese currency in the global financial system.”
“In addition to the dollar and the yen, we have been investing in Australian dollars since 2013 and are looking to invest in other currencies,” he said.
HSBC chief executive Stuart Gulliver, speaking at the same conference in Hong Kong, said that the Belt and Road Initiative (BRI) will increase the usage of RMB even further.
China’s central bank announced new measures earlier this month to encourage cross-border yuan transactions in support of BRI projects.