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A man walks by a money exchange shop decorated with Chinese yuan banknotes A man walks by a money exchange shop decorated with Chinese yuan banknotes and other countries currency banknotes, in Hong Kong, Aug. 6, 2019 (AP photo by Kin Cheung).

U.S. Sanctions on Iran Boost China’s Plans to Internationalize the Yuan

, Wednesday, Oct. 14, 2020

Editor’s Note: Every Wednesday, WPR contributor Lavender Au and Newsletter and Engagement Editor Benjamin Wilhelm curate the week’s top news and expert analysis on China.

In a further round of sanctions last week, the U.S. blacklisted virtually all of Iran’s financial sector. Perhaps in anticipation, Iran’s central bank announced that it had adopted the yuan, also known as the renminbi, as its main foreign reserve currency, replacing the U.S. dollar. With a 25-year strategic partnership with China under discussion, Iran will have a guaranteed market for its oil and gas exports, and with renminbi reserves, it will be able to more easily circumvent SWIFT, the messaging service used by banks around the world for money transfers. ...

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