Yuan eyes greater role among safe-haven assets

The US dollar and US Treasury bonds have long been seen as the bedrock of global safe-haven assets. However, since late 2024, growing fiscal and credit risks in the United States have raised market concerns, accelerating the global shift toward more diversified foreign exchange reserves. The weakening safe-haven function of the greenback and US Treasuries has created an opportunity for the Chinese yuan, also known as the renminbi, to fill the gap in global safe assets.