Global survey: Central banks will accelerate the rise of the Chinese yuan
The Global Public Investor survey shows that almost half of central banks surveyed in Africa plan to increase their yuan reserves over the next two years.
The Chinese yuan is on course to become a much more influential part of the global financial system with almost a third of central banks planning to add the currency to their reserve assets, the Global Public Investor survey showed on Wednesday (21 July).
, published annually by the London-based OMFIF think tank, showed 30% of central banks plan to increase yuan holdings over the next 12-24 months, compared to just 10% last year.
Other eye-catching findings from the report showed 75% of central banks now think monetary policy is having an excessive influence on financial markets, although only 42% think these policies need to be actively reconsidered.
In stark contrast to the yuan, 20% of central banks plan to reduce their holdings of the U.S. dollar over the next 12-24 months, 18% plan to reduce their euro holdings and 14% want to cut their holdings of eurozone sovereign debt.
Only 59% of central banks would be willing to use more than 30% of their reserves in the event of a serious currency shock, while 45% of pension funds now invest in gold, which was well up from 30% in last year’s survey.
It also showed that central banks, sovereign wealth funds, and public pension funds now control a record total of US$42.7 trillion worth of assets. Central bank reserves alone were up US$1.3 trillion to US$15.3 trillion as of the end of 2020.
Source: Asaaseradio.com
