Beijing throws a dollar glove. Juan is growing in strength

China take decisive actions to increase the role of Juan in the international financial system. The authorities in Beijing noticed favorable circumstances – geopolitical tensions and the political situation in the US – as a chance to promote their own currency on a global scale.

Currency strengthening

According to the information provided by the Bloomberg agency, China began a widely ended campaign aimed at internationalization of Juan. The strategy assumes not only the development of trade, but also the opening of Chinese markets and increasing capital flows. One of the key activities is to gradually endure capital restrictions and the development of cross -border payment systems. Beijing is also working on new financial instruments that are to attract foreign capital.

Currently, Juan is already exceeding the dollar in Chinese international settlements. In May, his participation in the settlements of trade in goods was 26 percent, and according to forecasts, he can reach up to 40 percent. by the end of 2025.

New order

Last week, Governor of the People’s Bank China, Mr. Gongsheng, presented a vision of a new currency order. According to him, the role of the dollar should be limited, and Chinese Juan should take a central place in the global financial system.

There are also plans to create an international operating center for the digital yuan in Shanghai and launch domestic futures contracts based on this currency that would compete with similar products listed, among others in Chicago and Singapore.

In addition, China plans to enable foreign investors to have wider access to domestic financial products and increase limits for the purchase of foreign assets for yuana. The goal is to increase the international turnover of the Chinese currency, which is currently responsible for 2.2 percent. global foreign exchange reserves.