News Analysis Beijing wants the yuan to be truly global, but this will be impossible unless the Chinese Communist Party (CCP) releases its capital controls and allows the currency value to be set by the markets. Even then, the dollar will most likely continue to be the world’s currency. Over the past two months, the yuan has taken a number of steps toward internationalization with the release of the digital yuan, as well as Russia using the yuan, possible yuan-denominated oil trade with Saudi Arabia, and discussions of yuan foreign currency reserves in other countries. Many speculate that the internationalization of the yuan may be accelerated by the CCP stepping in to help Russia bypass international sanctions. The issue, however, is that while China wants its currency to be widely used, like the dollar or the euro, the central government does not want to allow the currency to move freely …
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