European central banks to hold yuan, highlighting the Chinese currency’s rise
Brussels/Madrid — More central banks in Europe revealed plans on Tuesday to hold yuan as part of their foreign currency reserves, highlighting the Chinese currency’s rise into an elite league of the world’s major reserve currencies. The Bank of Spain said it was considering an investment in the yuan; the National Bank of Belgium said has already bought about €200m ($244.5m) worth of the Chinese currency; and Slovakia said it also bought an undisclosed amount of yuan. The moves come after the European Central Bank (ECB) converted €500m worth of its US dollar reserves into the Chinese currency last year, signaling confidence in it and likely encouraging others to make a similar move. The role of the yuan has increased steadily since the International Monetary Fund (IMF) included the currency in its special drawing right basket in October 2016, placing it into an elite group that includes the euro, the dollar, the yen and the pound. While the Swiss National Bank and the Bank of England...
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