The Chinese yuan may become the third global reserve currency after the dollar and Euro in the next ten years. This is the conclusion reached by analysts at Morgan Stanley, writes CNBC.
The growth of investment in the Chinese economy is called the reason for the increase in demand for the yuan. It currently accounts for only 2 percent of global foreign currency reserves. However, by 2030, the share of the yuan could rise to 5-10 percent and bypass the Japanese yen and the British pound.
In recent years, global Central banks have increasingly begun to include the yuan in their reserves. So, if in 2018 the Chinese currency was on the accounts of 60 percent of the world’s regulators, in 2019 their number increased to 70 percent.
Analysts expect that by the end of 2021, the exchange rate of the Chinese currency against the us will strengthen and reach 6.6 yuan per dollar. On Friday, September 4, the Chinese currency exchange rate was at 6.85 yuan per dollar.