HONG KONG: China’s yuan is expected to take a 12.5 per cent market share of global reserves by 2030, an HSBC survey of global reserve managers showed, suggesting that Beijing’s stepped up efforts to open its markets to foreign investments will have some pay off.

The survey was carried out in March and drew on responses from 72 central banks which manage $5.9 trillion in reserves, or 48pc of global reserves.

The yuan’s rise will be a gradual one, accounting for 2.9pc of global reserves by the end of 2015, 6.9pc by 2020, 10.4pc by 2025 and 12.5pc by 2030, the survey revealed. Thirty-five central banks, or 53pc of respondents, said they were either investing or considering investing in yuan assets now, but channels to China’s domestic markets were limited for them.

Published in Dawn, April 14th, 2015

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