Evans Says China Needs Deeper Markets for Yuan Push as 2009 Offshore Drive Accelerates
Updated
Updated · South China Morning Post · May 28
Evans Says China Needs Deeper Markets for Yuan Push as 2009 Offshore Drive Accelerates
1 articles · Updated · South China Morning Post · May 28
Charles Evans said China has a rare opening to internationalize the yuan, but only if it deepens domestic financial markets and moves toward full convertibility.
Speaking in Hong Kong, the former Chicago Fed president said the dollar’s global role rests on vibrant capital markets, deep Treasury liquidity and broad usefulness in trade and finance.
Evans also warned surging costs are likely to hit US inflation data harder and for longer than previously expected, adding a market-risk note to his currency remarks.
Beijing has promoted cross-border yuan use since 2009, and that push has gained speed as more countries question dollar weaponization after US sanctions and asset freezes on Russia.
With US debt soaring, is the dollar's biggest threat from China's yuan or its own unsustainable finances?
Can China's yuan truly go global while its financial markets remain walled off from the world?
As nations flee the 'weaponized' dollar, what does a world with multiple currency blocs actually look like?
From Settlement Surge to Digital Ambitions: The Yuan’s Global Rise and the Future of Currency Multipolarity
Overview
The internationalization of the yuan has gained strong momentum since the launch of yuan-based cross-border trade settlement in 2009, supported by continuous improvements in financial infrastructure and institutional arrangements. This progress is driven by a global shift toward a multipolar currency landscape, intensified geopolitical tensions, and the rapid rise of emerging economies. As the traditional international monetary system faces new pressures, the Chinese renminbi is positioned to play a larger global role. These changes have brought the U.S. dollar’s dominance under scrutiny, highlighting how geopolitical and economic shifts are reshaping the future of global currencies.