The yen may face a test of confidence as Tokyo aims to boost the currency’s presence abroad at a time when China has been eclipsing Japan’s clout on the world stage.
The yen may face a test of confidence as Tokyo aims to boost the currency’s presence abroad at a time when China has been eclipsing Japan’s clout on the world stage.
Japan’s gradual economic recovery and deeper ties with the rest of Asia could add some impetus, but there are still challenges for the yen to improve its status as a settlement and reserve currency. In the past decade, China has taken steps to internationalize its own currency, the yuan. The European Central Bank has shifted some of its foreign exchange reserves from the U. S. dollar to the yuan, a development some currency analysts view as giving a nod to the Chinese currency’s increased role.
