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Caution on the Yuan

Reports of the yuan replacing the euro are greatly exaggerated:

At most, around 15% of China’s trade (paywall) is currently settled in yuan. Either a big chunk of global trade—more than half—would need to come from China for 8.7% of global trade to be settled in yuan, or companies outside China would need to be settling trade in yuan, which doesn’t square with the currency’s inaccessibility.

So what can explain the funny numbers?

As always, read the fine print.

Posted in Culture.