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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00:00 It's Benzinga and here's what's on the block.
00:02 China is pushing for more use of the yuan internationally to reduce impact
00:06 from potential western sanctions like in a military conflict over Taiwan.
00:10 Expanding yuan use in trade is less challenging than making it a major global reserve currency,
00:14 according to a researcher. Countries are diversifying from dollars due to fears of
00:19 being cut off from the financial system by sanctions like Russia. Lack of yuan-denominated
00:24 risk-free assets, closed capital markets, and preference for one-man rule hinder the
00:28 yuan-replacing dollars. Recent global survey found little interest in yuan use for trade
00:32 due to lack of trading partner acceptance. For all things money visit Benzinga.com