China Takes New Step to Downgrade the Dollar’s Prominence
- Greenback’s weighting to decline to 22.4% from 26.4%
- China seeking currency stability as dollar strengthens
China Dilutes Dollar Role in FX Basket
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China took another step to degrade the dollar in defining the value of its currency, in an effort that cuts against its rival’s stubbornly strong hold on the global financial system.
An arm of the People’s Bank of China, which last year started setting the yuan against a basket of currencies, on Thursday said it’s adding 11 units to that reference group. The move lowers the dollar’s weighting by 4 percentage points, to 22.4 percent -- little more than twice the share for South Korea’s won, a new entrant.