Saudi Arabia sees yuan ‘far from being reserve currency’

March 17, 2014 10:44 am

Fahad al-Mubarak, the governor of the Saudi Arabian Monetary Agency (SAMA) has said the kingdom thinks that the Chinese yuan is a good option for diversifying foreign currency reserves, but it is still far from being a reserve currency, Reuters has reported. “We think it is a stronger currency, but it is far from being a reserve currency at this stage,” said Mubarak when asked whether it made sense to consider diversifying the central bank’s reserves to include the yuan or explore a currency swap agreement. “But indeed it represents a good option and a good diversifier and we have seen that some of the central banks have some reserves in the renminbi,” he said at an annual news conference in the Saudi capital.