<p>In theory, all things equal, yes ! However, China (and many emerging markets as well) accumulate foreign exchange reserves in order to keep the value of their currency relatively low compared to their 'natural rate', thus keeping a high competitivity for chinese exporters.</p>

CC BY-SA 4.0
2023-12-03T11:20:01.190Z
2023-12-03T11:20:01.190Z
justaneconomist
<p>If Chinese Yuan is internationalised and more countries use it to settle payments, then wouldn't that cause strengthening of Chinese Yuan and make Chinese exports uncompetetive ?</p>

<international-trade><exchange-rates>
Internationalization of Chinese Yuan, and Chinese exports?
ecorajx
# Internationalization of Chinese Yuan, and Chinese exports?

(Asked by: username_0 on 2023-12-02)

If Chinese Yuan is internationalised and more countries use it to settle payments, then wouldn't that cause strengthening of Chinese Yuan and make Chinese exports uncompetetive ?

**Tags:** international-trade, exchange-rates


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## 1 answers

### Answer by username_1 on 2023-12-03. Score: 0

In theory, all things equal, yes ! However, China (and many emerging markets as well) accumulate foreign exchange reserves in order to keep the value of their currency relatively low compared to their 'natural rate', thus keeping a high competitivity for chinese exporters.


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