China Wants to Make Yuan International, but Without Removing the Peg
Skerdian Meta • 1 min read
China has its currency pegged to the US Dollar, at around 6-7 Yuan for a Dollar. That was one of the issues US president Donald Trump had with China. China has become one of the major global economies, but it still keeps the Yuan pegged to the USD, which is not very dignifying for a global giant.
The Chinese central bank is trying to internationalize the Yuan, making it more attractive for foreigners, but without removing the peg. Or, are they heading towards that direction, especially now that the tensions with the US are elevated. Below are the comments from the PBOC:
Comments by the Chinese central bank
- Will push forward with yuan internationalisation
- Will remove obstacles for use of yuan both domestically and overseas
- Will make it easier for foreign investors to invest in Chinese bonds, stocks