Opinion: The Yuan’s Status as a Reserve Currency Could Improve

The status of the yuan as a reserve currency may improve in the face of large fluctuations in other reserve currencies such as the Japanese yen and British pound. Photo: The Paper

Soaring American interest rates have sparked a sharp appreciation of the U.S. dollar against other major currencies, and the yuan is no exception. The Chinese currency fell 12% this year against the greenback by the end of September, ranking in the middle among 14 major Asian economies. But the yuan, together with the Hong Kong dollar and the Vietnamese dong, is among the currencies that saw the least depreciation against the U.S. dollar since the end of 2019.