US dollar uncertainty propels use of e-CNY
Advertisement
As the second-largest economy, China must broaden the international role and appeal of the yuan. To this end, it makes sense to set up a new operations centre in Shanghai, the key mainland financial hub, to boost the yuan's global reach.
As announced at the just-concluded Lujiazui Forum in the city, the international operations centre will pilot a range of monetary policy tools to complement the rolling out of the digital renminbi.
The strategy underscores Beijing's determination to promote the use of the e-CNY, a central bank digital currency (CBDC), on a worldwide scale.
At a time when most countries are still grappling with the concept of a CBDC, China is moving full steam ahead. Successful trials in the retail use of e-CNY have been carried out across a dozen Chinese cities since 2023, and in Hong Kong since last year.
Advertisement
A promising cross-border payments and banking system called 'mBridge' is linking the CBDCs from the central banks of China, Hong Kong, the UAE, Saudi Arabia and Thailand.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
an hour ago
- South China Morning Post
US soybean farmers urge Trump to make purchase deal with China
American soybean farmers urged US President Donald Trump in a Tuesday letter to reach a trade deal with China that secures significant soybean purchase agreements, warning of dire long-term economic outcomes if the country continues to shun the US crop. China , the world's largest soybean buyer, is turning to Brazilian cargoes amid trade tensions with the US and continuing negotiations. The country has not pre-purchased soybeans from the coming US harvest, an unusual delay that has worried traders and farmers. 'Soybean farmers are under extreme financial stress. Prices continue to drop and at the same time our farmers are paying significantly more for inputs and equipment. 'US soybean farmers cannot survive a prolonged trade dispute with our largest customer,' said the letter sent from the American Soybean Association (ASA) to Trump on Tuesday. China's turn to Brazilian soybeans could cost US farmers billions. China bought 54 per cent of US soybean exports in the 2023-2024 marketing year, worth US$13.2 billion, according to the ASA. The country's soybean imports hit a record July high this year.
South China Morning Post
3 hours ago
- South China Morning Post
Zhou Ming, top engineer involved in Boeing 787 and A380 design, leaves US for China
Zhou Ming, renowned as the mastermind behind key industrial software used in planes such as the Boeing 787 and Airbus A380, has left his leadership role at US-based global engineering giant Altair to return to China. Advertisement An announcement on the website of the College of Engineering at the Eastern Institute of Technology in Ningbo said Zhou had joined as a chair professor and the first dean of the college in June and was already setting up a research team. Zhou also confirmed the move on his personal social media accounts, saying: 'I'm excited to drive frontier research addressing global challenges while inspiring the next generation of technology innovators. It's incredibly energising to be part of a mission far larger than ourselves.' The university said Zhou would 'establish a world-class research and development team for engineering software and optimisation design technology'. It will focus on core engineering software technology with the aim of 'empowering the independent innovation and enhancement of core competitiveness in China's high-end manufacturing industry'. Altair is a global leader in engineering software and computational science, focusing on simulation, data analysis, artificial intelligence and high-performance computing. Advertisement The company says it has more than 16,000 customers in 28 countries, in sectors such as aerospace, computing, finance, energy and the automotive industry. Its biography of Zhou said he had achieved 'remarkable results … on many iconic products, including the Boeing 787, Airbus 380 and 350, that everyone of us have touched first-hand'.
South China Morning Post
5 hours ago
- South China Morning Post
China confirms Indian Prime Minister Narendra Modi will visit at end of month
His comments, made during talks on the two countries' border dispute with Indian national security adviser Ajit Doval on Tuesday, came in the wake of a series of reports in Indian media that the visit would go ahead. It will be Modi's first trip to China in seven years and raises expectations he will meet Chinese President Xi Jinping on the sidelines of the event. The SCO, a largely Eurasian security bloc that China chairs this year, will meet in the northern city of Tianjin between August 31 and September 1. Russian President Vladimir Putin had already confirmed he would attend. Wang's trip to India marked another milestone in ties between the two countries, which sharply deteriorated after a deadly border clash in 2020. The two countries are now seeing their relationship improve amid ongoing trade tensions with the United States. Wang said relations were on a steady course, with the border situation continuing to 'stabilise and improve'.
