Yuan looks more inviting to global central banks

Is the Chinese yuan already the world’s No 3 currency after the US dollar and Japanese yen? It would be easier to dismiss this assertion by Renmin University of China’s International Monetary Institute as fanciful – or pro-Beijing propaganda – if not for two recent overseas reports suggesting a similar trajectory. Case in point: findings by the Official Monetary and Financial Institutions Forum (OMFIF) think tank that a “stunning” 30% of central banks will be increasing their yuan exposure in the next one to two years, way up from 10% last year. That survey of 100 officials at central banks, sovereign wealth funds and public pension funds showed that monetary authorities plan to reduce holdings of dollars by 18% and euros by 16%.