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China will continuously promote yuan internationalization in 2021, says central bank

BEIJING, Sept 18 (Reuters) – China will “steadily and prudently” promote the internationalization of the yuan in 2021 and further develop foreign currency markets, the central bank said on Saturday.

Cross-border business in local currency totaled 28.39 trillion yuan ($ 4.39 trillion) in 2020, up 44.3% from the previous year, the People’s Bank of China said in its 2021 yuan internationalization report. .

Cross-border deals in yuan accounted for 46.2% of total international business, reaching a record high, the central bank said. External business in foreign trade reached 4.78 trillion yuan last year, 12.7% more than in 2019, according to the central bank.

The central bank will strengthen cross-border monitoring of capital flows and avoid systemic risks, he added.

China has been trying to boost the global clout of the yuan since 2009 to reduce reliance on the dollar in trade and investment deals and challenge the role of the greenback as the world’s main reserve currency.

But despite some moves towards liberalization, it maintains a tight grip on the currency due to concerns that excessive volatility could affect cross-border capital flows and damage the economy.

($ 1 = 6.4655 yuan)

(Reporting by Kevin Yao, Edited in Spanish by Manuel Farías)

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