Investment surge in Central Asia drives calls for expanded use of Chinese yuan

Use of the currency can cut risks and costs for infrastructure firms active in the mineral-rich region, according to speakers on an investment panel Expanding use of the Chinese yuan in fast-growing Central Asia, where China is a top investor, can reduce risks and costs for infrastructure firms, part of a broader trend that sees the currency gaining ground wherever commercial flows create demand for it, according to speakers on an investment panel in Hong Kong on Thursday. Smoother access to the yuan would lower risks inherent in currency exchanges, particularly when the more internationalised US dollar is trending strong, and bring down the costs of exporting equipment from China, speakers said during a discussion on yuan internationalisation at the Belt and Road Summit. “The internationalisation of the renminbi is particularly important to us because most of our equipment is manufactured in China and shipped over,” said Long Jisheng, chairman and CEO of the Shanghai-based waste management firm SUS Environment. In the infrastructure industry, where margins are razor-thin, exchange-rate fluctuations could wipe out profits entirely, he noted.

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