Tag Archives: Yuan

Zimbabwe to adopt Chinese yuan as legal currency after debt cancellation

In an unprecedented move that signals China’s growing global influence, Zimbabwe has announced that it will adopt the Chinese currency as legal tender.

The announcement came after China cancelled $40-million (U.S.) in Zimbabwean debt earlier this week. China is already Zimbabwe’s biggest trading partner, and Beijing is often praised by the Zimbabwean government, which has adopted a “Look East” policy after years of sanctions by Western governments.

While the decision to adopt the Chinese yuan as legal tender next month is largely a political message by an anti-Western government, it also illustrates China’s economic power in Africa, where Beijing has rapidly become a major investor and the continent’s biggest trading partner.

Read more » The Globe and Mail
See more » http://www.theglobeandmail.com/report-on-business/international-business/african-and-mideast-business/zimbabwe-to-adopt-chinese-yuan-as-legal-currency-after-debt-cancellation/article27914154/

China’s yuan gains IMF reserve status

The International Monetary Fund (IMF) has announced that China’s currency, the yuan, will join the fund’s basket of reserve currencies.

Currently just the US dollar, the euro, the yen and the pound are in the group.

The IMF said the yuan “met all existing criteria” and should become part of the basket in October 2016.

The yuan will now make up part of the IMF’s Special Drawing Rights (SDR) – an asset created by the IMF which serves almost as a currency.

It is used for transactions between central banks and the IMF, and is used to decide the currency mix that countries like Greece, for example, receive when the IMF provides financial aid.

The last change made to the basket was in 2000, when the euro replaced the German mark and the franc.

Read more » BBC
See more »  http://www.bbc.com/news/business-34957580