In 2016, Chinese President Xi Jinping detailed a decade-long campaign to morph the yuan into a top-tier currency. That year, it scored a spot in the International Monetary Fund’s reserve currency basket alongside the dollar, yen, euro and pound.
Today, we see that the yuan only needed five years to have Japan looking over its shoulder – and put the US on edge.
As 2021 unfolds, surging demand for China’s currency is turning heads everywhere. In London and beyond, options in the yuan are topping those referencing the yen, which has traditionally been Asia’s most liquid unit of exchange. The increase in yuan trading can be seen from New York to Tokyo, too.