Problems and prospects of the yuan in international payments

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Abstract

 The purpose of the article is to analyze the role of the yuan in the international financial system, including its status as a reserve currency and use in cross–border payments, identify problems hindering its strengthening, and assess the prospects for further development. The study used data from the International Monetary Fund, the Bank for International Settlements, the People's Bank of China, as well as reports on the development of the cross-border interbank payment system. Methods of systematization, visualization, correlation, comparative and SWOT analysis were used to assess the dynamics and factors of influence. As a result, it was found that the share of the yuan in international and trade settlements has increased, but the process of its internationalization is facing limitations related to partial convertibility and geopolitical factors. Nevertheless, the yuan has a high potential for development, provided that the identified limitations are addressed.

About the authors

Diana Andreevna Shabalina

Peoples' Friendship University of Russia named after Patrice Lumumba (RUDN)

Author for correspondence.
Email: 1132220412@pfur.ru
ORCID iD: 0009-0008-4206-8827

Student, Institute of World Economy and Business, Peoples' Friendship University of Russia named after Patrice Lumumba

117198, Moscow, Russia, Miklukho-Maklaya st., 6

Darya Sergeevna Sokolan

Peoples' Friendship University of Russia named after Patrice Lumumba (RUDN)

Email: sokolan_d@pfur.ru
ORCID iD: 0000-0002-9883-6804
SPIN-code: 6333-8694

Candidate of Economics, Associate Professor at the Department of International Economic Relations at RUDN University, Deputy Dean for International Activities at the Faculty of Economics.

117198, Moscow, Russia, Miklukho-Maklaya st., 6

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