China’s drive to internationalize its currency faces fresh challenges as overall use of the yuan by global companies dropped 5% over the past year as European companies switched to dealing in a weakened euro, The Wall Street Journal reported, citing an investor survey by HSBC Holdings. Much of that impact has been felt in Hong Kong, the yuan’s biggest offshore market, where the percentage of companies using the yuan for settlement is down six percentage points to 52%. These headwinds come as China pushes for the International Monetary Fund to grant its currency inclusion in the Special Drawing Right, an international reserve asset that can supplement member countries’ official reserves.
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