China’s yuan fit to rival US dollar as global currency if more accessible: economist

‘US exceptionalism is over – the beginning of the end,’ Singapore-based economist warns while weighing in on how China can internationalise its currency

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China is looking to challenge the US dollar’s dominance in international trade, but more needs to be done to make the yuan a global currency. Photo: dpa

Published: 8:00am, 19 May 2025

China’s yuan has the potential to rival a weakening US dollar as a global currency if Beijing liberalises convertibility and access for foreigners, according to a senior Asian economist.

China wants more international use of its centrally controlled yuan, and the currency already works fluidly in cross-border purchase settlements, said Hoe Ee Khor, chief economist with the Singapore-based Asean+3 Macroeconomic Research Office.

“The US exceptionalism is over – the beginning of the end,” Khor told the Post on Thursday. “The US dollar is not the safe currency it used to be. The renminbi has always been held up as one of the possible alternatives, and it’s growing.”

But to push back against the dollar, China must “deepen” its financial markets so foreigners can better access yuan-denominated stocks, bonds and other assets, Khor said. New yuan-backed asset classes would also help, he added.

He cited, as a model, China’s existing “connect” schemes with Hong Kong, through which foreign investors can buy mainland Chinese bonds and stocks without special licences.

Convertibility remains another concern among investors outside the mainland, he added.