Nearly all (93 per cent) institutional investors believe the Chinese yuan is going to become the reserve currency for multiple countries within the next five years, according to a new study by mining firm Tresor Gold.
It found a third (30 per cent) of respondents believe the move will prove highly successful, while only two per cent expect a decline in the yuan.
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“The yuan’s adoption as a reserve currency finds strong support in China’s robust economic prowess and significant international trade flows, leading investors to believe that the country will persuasively convince central bankers worldwide to acknowledge the yuan’s growing role,” said a press release.
The yuan is in fifth place for largest currency held by proportion in global foreign exchange reserves, while the U.S. dollar holds the first spot of currency reserves, according to data from the International Monetary Fund.
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