Trade war may delay yuan as reserve currency
Central banks are cautious when building renminbi reserves due to legal and liquidity issues
The adoption of the renminbi as a reserve currency has been slow, despite China’s internationalisation efforts, and the US-China trade standoff could delay the process further, said a reserve manager at an Asian central bank.
“Issues with capital immobility, exchange rate flexibility, lack of familiarity with local laws, property right and regulations, among others, have all played a part in keeping [the] renminbi from becoming a truly global currency,” said the reserve manager, who was
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