Mersch: China’s yuan could turn into the global reserve currency
CHINA’S yuan may come to rival the US dollar as the most important currency in the world, a senior Brussels official said yesterday.
Yves Mersch, an executive board member of the European Central Bank, was speaking in Luxembourg at an event endorsing the state as a location for the trading of China’s renminbi, also known as yuan.
Calling on China to continue its financial reforms, Mersch said: “If it can do so successfully, it might one day become a leading reserve currency. Due to the size of China’s economy and its importance in global trade and, potentially, finance, the renminbi might ultimately come to challenge the US dollar.”
Luxembourg’s approach to China could see it rival London in the race to become the leading marketplace for offshore renminbi trading. Chancellor George Osborne wants London to be the top destination.