China promotes digital yuan and multi-polar currency system to reduce reliance on US dollar.

From Yahoo Finance: 2025-06-17 23:46:00

China’s central bank aims to increase global use of digital yuan and advocate for a multi-polar currency system. An international e-CNY operation center will be set up in Shanghai. Amid U.S. trade tensions, China seeks to reduce reliance on the dollar by promoting multiple global currencies. Washington’s tariff policies have led to a shift away from the U.S. dollar towards Asian currencies and stablecoins. China aspires for the yuan to be a global currency, but faces challenges due to capital controls. Foreign banks, including Standard Bank and First Abu Dhabi Bank, will use China’s Cross-Border Interbank Payment System, expanding yuan’s role in global trade. Traditional cross-border payment systems are seen as inefficient and vulnerable to geopolitical risks. China pledges to stabilize the yuan exchange rate and enhance its ability to counter forex market volatility. Beijing plans to further open up its financial market to foreign players, offering a transparent and predictable environment. China’s growing consumer market presents new opportunities for foreign institutions.



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