{"id":27861,"date":"2024-04-24T10:44:32","date_gmt":"2024-04-24T10:44:32","guid":{"rendered":"https:\/\/www.xtrememarkets.com\/?p=27861"},"modified":"2024-04-24T10:44:32","modified_gmt":"2024-04-24T10:44:32","slug":"yuans-global-expansion-efforts-face-domestic-setback","status":"publish","type":"post","link":"https:\/\/www.xtrememarkets.com\/ID\/yuans-global-expansion-efforts-face-domestic-setback\/","title":{"rendered":"Yuan&#8217;s Global Expansion Efforts Face Domestic Setback"},"content":{"rendered":"<h1><strong>Yuan&#8217;s Global Expansion Efforts Face Domestic Setback<\/strong><\/h1>\n<p><span style=\"font-weight: 400;\">As Chinese leader Xi Jinping pushes to enhance the yuan\u2019s role in global trade and finance, he faces resistance from an unexpected quarter: mainland companies. Recent data from the People\u2019s Bank of China (PBOC) indicates that corporate leaders are hesitant to convert their foreign-exchange earnings into the local currency.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In March, foreign exchange deposits surged to US$833 billion from $779 billion the previous month, suggesting a reluctance among businesses to convert their earnings into yuan. The primary reason appears to be the higher offshore interest rates, which have led to a weaker-than-expected yuan. Alvin Tan, a currency strategist at RBC Capital Markets, points out that the significant positive yield spread between the US and China, the largest since 2007, discourages Chinese exporters from exchanging dollars for yuan.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This scenario poses a challenge for Beijing\u2019s currency managers who may be tempted to devalue the yuan to follow the yen\u2019s decline, potentially complicating Xi\u2019s broader strategy for the yuan&#8217;s internationalization. Although Xi and Premier Li Qiang have avoided devaluing the yuan amidst growing economic pressures, a weaker exchange rate might boost exports and help maintain GDP growth around 5% while keeping deflation at bay.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The reluctance to pursue a lower yuan also stems from concerns over the financial stability of large property developers and the potential for defaults akin to those seen with China Evergrande Group. Additionally, a weaker yuan could heighten tensions internationally, particularly ahead of significant political events like the US election on November 5.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Dmitry Dolgin, an economist at ING Bank, notes that despite these challenges, China\u2019s expanding trade relations and financial infrastructure continue to support the potential for further yuan integration into the global economy. However, the declining yen, which has fallen to 34-year lows, complicates Beijing\u2019s efforts to stabilize consumer prices and manage the economy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moreover, China faces internal pressures such as its property market crisis, record youth unemployment, and excessive local government borrowing. Fitch Ratings recently downgraded China\u2019s sovereign credit rating, citing financial strains on municipalities and local government financing vehicles affected by the property market slowdown, which are now facing significant refinancing pressures. This complex economic landscape makes Xi\u2019s task of promoting the yuan on the world stage increasingly challenging.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yuan&#8217;s Global Expansion Efforts Face Domestic Setback As Chinese leader Xi Jinping pushes to enhance the yuan\u2019s role in global trade and finance, he faces resistance from an unexpected quarter: mainland companies. Recent data from the People\u2019s Bank of China (PBOC) indicates that corporate leaders are hesitant to convert their foreign-exchange earnings into the local<\/p>\n... <a href=\"https:\/\/www.xtrememarkets.com\/ID\/yuans-global-expansion-efforts-face-domestic-setback\/\">continue reading<\/a>.","protected":false},"author":1,"featured_media":27862,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[17],"tags":[470,288,168,2483,165,42,2485,201,2311,2481],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v16.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\r\n<title>Yuan&#039;s Global Expansion Efforts Face Domestic Setback<\/title>\r\n<meta name=\"description\" content=\"As Chinese leader Xi Jinping pushes to enhance the yuan\u2019s role in global trade and finance, he faces resistance from an unexpected quarter: mainland companies\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.xtrememarkets.com\/ID\/yuans-global-expansion-efforts-face-domestic-setback\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"Yuan&#039;s Global Expansion Efforts Face Domestic Setback\" \/>\r\n<meta property=\"og:description\" content=\"As Chinese leader Xi Jinping pushes to enhance the yuan\u2019s role in global trade and finance, he faces resistance from an unexpected quarter: mainland companies\" \/>\r\n<meta property=\"og:url\" content=\"https:\/\/www.xtrememarkets.com\/ID\/yuans-global-expansion-efforts-face-domestic-setback\/\" \/>\r\n<meta property=\"og:site_name\" content=\"Xtreme Markets\" \/>\r\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/xtreamforex.official\/\" \/>\r\n<meta property=\"article:published_time\" content=\"2024-04-24T10:44:32+00:00\" \/>\r\n<meta property=\"og:image\" content=\"https:\/\/www.xtrememarkets.com\/ID\/wp-content\/uploads\/2024\/04\/Yuans-Global-Expansion.png\" \/>\r\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\r\n\t<meta property=\"og:image:height\" content=\"620\" \/>\r\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\r\n<meta name=\"twitter:creator\" content=\"@xtreamforex\" \/>\r\n<meta name=\"twitter:site\" content=\"@xtreamforex\" \/>\r\n<meta name=\"twitter:label1\" content=\"Est. reading time\">\n\t<meta name=\"twitter:data1\" content=\"2 minutes\">\r\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":[\"Organization\",\"Place\"],\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/#organization\",\"name\":\"Xtreamforex\",\"url\":\"https:\/\/www.xtrememarkets.com\/ID\/\",\"sameAs\":[\"https:\/\/www.facebook.com\/xtreamforex.official\/\",\"https:\/\/www.instagram.com\/xtreamforex.official\/\",\"https:\/\/in.linkedin.com\/company\/xtream-forex\",\"https:\/\/www.youtube.com\/channel\/UCbbTuJV9XhurjZciRLdvFBg\",\"https:\/\/www.pinterest.com\/xtreamforex_trading\/\",\"https:\/\/twitter.com\/xtreamforex\"],\"logo\":{\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/yuans-global-expansion-efforts-face-domestic-setback\/#local-main-organization-logo\"},\"image\":{\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/yuans-global-expansion-efforts-face-domestic-setback\/#local-main-organization-logo\"},\"openingHoursSpecification\":[{\"@type\":\"OpeningHoursSpecification\",\"dayOfWeek\":[\"Monday\",\"Tuesday\",\"Wednesday\",\"Thursday\",\"Friday\",\"Saturday\",\"Sunday\"],\"opens\":\"09:00\",\"closes\":\"17:00\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/#website\",\"url\":\"https:\/\/www.xtrememarkets.com\/ID\/\",\"name\":\"Xtreme Markets\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":\"https:\/\/www.xtrememarkets.com\/ID\/?s={search_term_string}\",\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/yuans-global-expansion-efforts-face-domestic-setback\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/www.xtrememarkets.com\/ID\/wp-content\/uploads\/2024\/04\/Yuans-Global-Expansion.png\",\"contentUrl\":\"https:\/\/www.xtrememarkets.com\/ID\/wp-content\/uploads\/2024\/04\/Yuans-Global-Expansion.png\",\"width\":1200,\"height\":620,\"caption\":\"Yuan's Global Expansion Efforts\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/yuans-global-expansion-efforts-face-domestic-setback\/#webpage\",\"url\":\"https:\/\/www.xtrememarkets.com\/ID\/yuans-global-expansion-efforts-face-domestic-setback\/\",\"name\":\"Yuan's Global Expansion Efforts Face Domestic Setback\",\"isPartOf\":{\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/yuans-global-expansion-efforts-face-domestic-setback\/#primaryimage\"},\"datePublished\":\"2024-04-24T10:44:32+00:00\",\"dateModified\":\"2024-04-24T10:44:32+00:00\",\"description\":\"As Chinese leader Xi Jinping pushes to enhance the yuan\\u2019s role in global trade and finance, he faces resistance from an unexpected quarter: mainland companies\",\"breadcrumb\":{\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/yuans-global-expansion-efforts-face-domestic-setback\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.xtrememarkets.com\/ID\/yuans-global-expansion-efforts-face-domestic-setback\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/yuans-global-expansion-efforts-face-domestic-setback\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"item\":{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.xtrememarkets.com\/\",\"url\":\"https:\/\/www.xtrememarkets.com\/\",\"name\":\"Home\"}},{\"@type\":\"ListItem\",\"position\":2,\"item\":{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/yuans-global-expansion-efforts-face-domestic-setback\/\",\"url\":\"https:\/\/www.xtrememarkets.com\/ID\/yuans-global-expansion-efforts-face-domestic-setback\/\",\"name\":\"Yuan&#8217;s Global Expansion Efforts Face Domestic Setback\"}}]},{\"@type\":[\"Article\",\"NewsArticle\"],\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/yuans-global-expansion-efforts-face-domestic-setback\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/yuans-global-expansion-efforts-face-domestic-setback\/#webpage\"},\"author\":{\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/#\/schema\/person\/7174bacf55d9f2c6a7277328b874a5b0\"},\"headline\":\"Yuan&#8217;s Global Expansion Efforts Face Domestic Setback\",\"datePublished\":\"2024-04-24T10:44:32+00:00\",\"dateModified\":\"2024-04-24T10:44:32+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/yuans-global-expansion-efforts-face-domestic-setback\/#webpage\"},\"publisher\":{\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/yuans-global-expansion-efforts-face-domestic-setback\/#primaryimage\"},\"keywords\":\"Bank of China,Chinese,daily news,Domestic Setback,Economic news,Market,marketnews,xtreamforex,Xtreme Markets,Yuan's Global\",\"articleSection\":\"Economic News\",\"inLanguage\":\"en-US\",\"copyrightYear\":\"2024\",\"copyrightHolder\":{\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/#organization\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/#\/schema\/person\/7174bacf55d9f2c6a7277328b874a5b0\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/4080574095d9dbb97d78774d21261f5d?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/4080574095d9dbb97d78774d21261f5d?s=96&d=mm&r=g\",\"caption\":\"admin\"},\"sameAs\":[\"https:\/\/www.xtrememarkets.com\/ID\"]},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.xtrememarkets.com\/ID\/yuans-global-expansion-efforts-face-domestic-setback\/#local-main-organization-logo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/www.xtrememarkets.com\/ID\/wp-content\/uploads\/2024\/02\/image_2024_02_23T12_39_46_331Z.png\",\"contentUrl\":\"https:\/\/www.xtrememarkets.com\/ID\/wp-content\/uploads\/2024\/02\/image_2024_02_23T12_39_46_331Z.png\",\"width\":800,\"height\":500,\"caption\":\"Xtreamforex\"}]}<\/script>\r\n<!-- \/ Yoast SEO Premium plugin. -->","_links":{"self":[{"href":"https:\/\/www.xtrememarkets.com\/ID\/wp-json\/wp\/v2\/posts\/27861"}],"collection":[{"href":"https:\/\/www.xtrememarkets.com\/ID\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.xtrememarkets.com\/ID\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.xtrememarkets.com\/ID\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.xtrememarkets.com\/ID\/wp-json\/wp\/v2\/comments?post=27861"}],"version-history":[{"count":2,"href":"https:\/\/www.xtrememarkets.com\/ID\/wp-json\/wp\/v2\/posts\/27861\/revisions"}],"predecessor-version":[{"id":27864,"href":"https:\/\/www.xtrememarkets.com\/ID\/wp-json\/wp\/v2\/posts\/27861\/revisions\/27864"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.xtrememarkets.com\/ID\/wp-json\/wp\/v2\/media\/27862"}],"wp:attachment":[{"href":"https:\/\/www.xtrememarkets.com\/ID\/wp-json\/wp\/v2\/media?parent=27861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.xtrememarkets.com\/ID\/wp-json\/wp\/v2\/categories?post=27861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.xtrememarkets.com\/ID\/wp-json\/wp\/v2\/tags?post=27861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}