China Finds Costly New Way of Boosting Xi’s Global Yuan Push

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China is successfully expanding the use of the yuan as a global currency by offering yuan-denominated loans to countries like Ethiopia, potentially reducing China's revenue but increasing the yuan's international usage.

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Market impact analysis based on bullish sentiment with 80% confidence.

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Bullish
ثقة الذكاء الاصطناعي
80%

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Ethiopia became the latest this week in looking to convert at least part of the $5.38 billion owed to Beijing into yuan-denominated loans. “If the borrowers pay less, then the lender gets less,” said Michael Pettis, a senior fellow at the Carnegie Endowment for International Peace. “The benefit for China in exchange for less revenue is that the renminbi becomes a more internationally-used currency.”

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