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China’s global currency ambitions falling flat with central banks

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         China’s global currency ambitions falling flat with central banks

The Chinese yuan accounted for only 1.1% of global foreign-exchange reserves last year, the latest sign that China is meeting resistance in its effort to make the yuan a global currency.

A quarterly report from the International Monetary Fund on Friday showed that central banks held $84.5 billion in yuan reserves in the fourth quarter, the first time the IMF reported central bank holdings of the Chinese currency

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China has been taking steps in recent years to encourage more central banks and other investors to hold the currency, such as providing more details about its currency policies and its own reserve holdings.

The government views broader acceptance of the yuan, also known as the renminbi, as a way to expand China’s global influence. If central bankers boosted their yuan holdings, it could also boost the yuan’s value and ease pressure on China to stabilize the currency using its own reserves. China’s reserve level dipped below $3 trillion in January after the central bank stepped up efforts to defend the currency, though reserves rebounded in February.

An expanded version of this story is available at WSJ.com

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