As markets fret about the stability of US President Donald Trump’s dollar, more attention should be focused on why China’s currency is still so unready for prime time.
Has there been a better moment, as Sino-US tensions explode, for the yuan to take its rightful place as among the world’s top two unit of exchange than now?
Faced with the prospect of Trump’s administration restricting Beijing’s access to the reserve currency, President Xi Jinping’s government is confronting something bigger: its failure to get more investors and businesspeople to use the yuan.
Internationalizing the yuan has been a Communist Party priority for well over a decade. The extent to which the global share of transactions is conducted in a country’s currency has grown in importance since the 2008 global financial crisis.