Thu October, 2020, Age: 3 years
The yuan accounted for about 2 percent of global reserves and 1.76 percent of cross-border payments by the end of June. China is aiming to use the yuan “as much as possible” in pricing, settlement, receipts and payment and reserves across the Belt and Road Initiative to try and expand its use as a reserve currency.
Beijing has made only limited progress in its efforts to internationalize the yuan, in part because of its firm controls over the capital account. China has had some success in establishing bilateral trade swap agreements to this end, but its failure to consistently pursue economic reforms on a greater scale has hurt its goals. In the wake of COVID-19, China has continued to promote measures designed to increase FDI and aid RMB internationalization; at the same time, troubles in Hong Kong and changes in the global economic landscape due to the pandemic have hurt this progress.
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