The Global Government Investor Survey, published annually by the Forum of Official Monetary and Financial Institutions, showed that the Chinese yuan is about to become a much more important component of the global financial system. With about a third of central banks planning to add currency to their reserves.
The survey shows that 30 percent of central banks plan to increase their yuan holdings over the next 12-24 months, compared to just 10 percent last year.
According to the survey also, 75% of central banks believe that monetary policy has an exaggerated impact on financial markets currently, but only 42% see the need to reconsider In such policies.
In contrast to the yuan, 20 percent of central banks plan to reduce holdings of US dollars over 12-24 months, and 18 percent plan to reduce holdings of The euro, and wants 14% to reduce the holdings of the sovereign debt of the euro area.
The survey showed that central banks, sovereign wealth funds and pension funds now control $42.7 trillion in assets, a record high. Central bank reserves alone increased by 1.3 trillion dollars to 15.3 trillion by the end of 2020.