Opinion: Yuan’s Share of Global Forex Reserves Will Eventually Surpass Yen, Sterling

The unprecedented scope and breadth of financial sanctions imposed on Russia have renewed interest in the potential for greater use of the yuan as a reserve currency. While many commentators have pointed to the small scale of foreign official holdings of yuan assets and the low share of global financial transactions denominated in the yuan as evidence that the currency isn’t ready to play a greater role, we think this misses the point. It will be made ready.