Yuan to be global reserve currency by 2030, expert

By Joe McGee, April 10, 2014

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The Chinese yuan is set to join the US dollar and the euro as one of three global reserve currencies by 2030, a financial expert has announced.

Speaking at the Boao Forum for Asia on Wednesday, former chief economist and senior vice president of the World Bank Justin Yifu Lin told attendees that as the world's largest exporter, around 25 percent of China's exports are now priced in RMB, with it even becoming the main settlement currency in some regions. 

Lin also predicted that the Japanese yen, the Swiss franc, and the British pound will also be used as reserve currencies, but in smaller amounts.

"Confidence in the yuan lies in China's real economy that is stronger than developed countries, and will maintain growth of 7 to 8 percent for the coming 20 years," he said.

Faith in the yuan has been restored recently after declines made it Asia's worst performing currency. 

However, the dollar will still dominate the market, Lin says, as only 5 percent of trade is settled in RMB compared to 60 to 70 percent in USD.

[Image via Flickr]

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