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✓ Published: 31-May-2024
China is pushing for more international use of the yuan to reduce the impact of potential Western sanctions, such as in a military conflict over Taiwan. Expanding yuan use in trade is less challenging than making it a major global reserve currency, according to a researcher. Countries are diversifying from dollars due to fears of being cut off from the financial system by sanctions like Russia. A lack of yuan-denominated risk-free assets closed capital markets, and a preference for one-man rule hindered the yuan's replacement for dollars. A recent global survey found little interest in yuan use for trade due to a lack of trading partner acceptance.
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