World’s reserve currency. When it inevitably switches to the yuan
That’s neither inevitable nor likely at this point. China’s capital controls, ongoing devaluation of its currency and demonstrated willingness to prioritize the state over investors –at least some of which are positive things I wish we had– make Chinese assets in general and the renminbi in particular not investible to the degree necessary to achieve reserve status. The euro has better chances for now, especially if European debt is unified and becomes more liquid.
World’s reserve currency. When it inevitably switches to the yuan you’ll have your subservience.
That’s neither inevitable nor likely at this point. China’s capital controls, ongoing devaluation of its currency and demonstrated willingness to prioritize the state over investors –at least some of which are positive things I wish we had– make Chinese assets in general and the renminbi in particular not investible to the degree necessary to achieve reserve status. The euro has better chances for now, especially if European debt is unified and becomes more liquid.