Central banks will accelerate rise of China’s yuan, global survey shows By Reuters – Investing.com

SourceInvesting.com
SectorFinancial Services
CountryMiddle east

© Reuters. FILE PHOTO: Chinese 100 yuan banknotes are seen in a counting machine while a clerk counts them at a branch of a commercial bank in Beijing, China, March 30, 2016. REUTERS/Kim Kyung-Hoon

LONDON (Reuters) – The is on course to become a much more influential part of the global financial system with almost a third of central banks planning to add the currency to their reserve assets, a closely-followed survey showed on Wednesday.

The Global Public Investor survey, published annually by the London-based OMFIF think tank, showed 30% of central banks plan to increase yuan holdings over the next 12-24 months, compared to a much smaller 10% last year.

Other eye-catching findings from the report showed that 75% of central banks now think monetary policy is having excessive influence on financial markets, although only 42% think these policies needs to be actively reconsidered.

In stark contrast to the yuan, 20% of central banks plan to reduce their holdings of the U.S....read more...