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ECB’s Coeure: Yuan May Become Reserve Currency

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The Chinese yuan has the potential to become a major international currency and to be included in the basket of currencies, ECB Executive Board member Benoit Coeure said during Euro Finance Week in Frankfurt.
Frankfurt – The economic prowess of China is gradually translating itself into a greater presence on the financial stage, European Central Bank (ECB) Executive Board member Benoit Coeure said at the European-Chinese Banking Day, one of the Euro Finance Week events in Frankfurt.

While speaking about the rise of China’s economic might, Coeure agreed that the yuan, as China’s renminbi (RMB) currency is known, could take a much more important position in the years ahead.

“In the last few years, central banks across the world have started to hold onshore Chinese renminbi (CNY) in their reserves portfolios, usually with the expectation that CNY may become a reserve currency in the coming years. Many others indicate interest in reserve asset diversification into CNY once China’s onshore market opens up further. This is an issue that the Eurosystem will also have to further reflect on in the future,” Coeure said.

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