0:23 15 September 2021
Post by: WBJ

China wants to be a currency power

China wants to be a currency power
Source: Photo by Eric Prouzet on Unsplash

The share of the Chinese currency in global settlements – currently around 2.5 percent –  is systematically growing, but still does not reflect China's economic and financial power. But it's only a matter of time as the yuan's internationalization has accelerated rapidly. There is no doubt that it will have a huge impact also on Polish importers and exporters.

According to the International Monetary Fund (IMF) data, in terms of nominal GDP expressed in US dollars, China ranks second, just behind the US. Over 18 percent of China's share of global GDP is contrasted with the relatively low importance of the Chinese currency.

"For several years, the Chinese have been steadfastly striving to internationalize their currency. The goal? To take the US dollar of the palm as one of the accounting currencies in world trade. it has been consistently implemented," Adam Stosio, Managing Director of Ebury Polska, said.

One of the turning points was the end of 2015, when the Chinese yuan was included by the IMF in the prestigious basket of the so-called foreign exchange reserves - alongside the four other major world currencies, namely the dollar, euro, yen, and pound sterling. In turn, in 2017, for the first time in history, the European Central Bank (the central bank of the euro area) placed part of its monetary reserves in Chinese currency.

"The first signals from large Polish companies (not only from the raw materials industry) about the transition to the yuan in settlements would certainly accelerate the process of adaptation of this currency on the Polish market. But the catalyst for changes could also be possible decisions of the authorities of the National Bank of Poland on the structure of foreign exchange reserves. to them the yuan is not excluded - the progressing internationalization of the Chinese currency is already causing reshuffles in the portfolios of central banks around the globe," Adam Stosio said.


ebury polska
adam stosio

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