The Chinese yuan (renminbi) is steadily increasing its prominence on the global stage, reflecting China’s growing economic influence. According to Liu Qing, associate professor at the School of Economics and Management at Tsinghua University, the currency’s rising share in global payments underscores its strengthening position in international finance.
In a recent interview with Guan Xin of CGTN Global Business, Liu Qing discussed China’s economic data from the first quarter, highlighting promising signs of recovery and growth. He noted that the increased use of the yuan in international transactions demonstrates the international community’s growing confidence in China’s economic stability and financial systems.
Liu Qing explained that as China continues to liberalize its financial markets and promote the yuan’s internationalization, more countries are incorporating the currency into their foreign exchange reserves and cross-border transactions. This shift, he suggested, could have long-term implications for global currency dynamics and economic relations.
He also pointed out that the yuan’s growth aligns with China’s broader economic strategies, including initiatives like the Belt and Road Initiative, which aim to expand trade and investment links across Asia and beyond. By enhancing the yuan’s global standing, China fosters deeper economic integration and cooperation with other nations.
The implications of the yuan’s rising status are significant for businesses, investors, and policymakers worldwide. As the currency gains traction, it offers new opportunities and considerations for international trade, investment portfolios, and economic planning.
Liu Qing emphasized that the Chinese yuan is poised to play an increasingly influential role in the global financial system. He suggested that this evolution presents both challenges and opportunities that stakeholders around the world need to navigate carefully.
Reference(s):
Academic: Chinese yuan's importance as global currency growing
cgtn.com
