• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 11 minutes IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 7 hours Alberta govt to construct another WCS processing refinery
  • 3 hours What Can Bring Oil Down to $20?
  • 6 hours U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 5 hours Let's Just Block the Sun, Shall We?
  • 8 hours OPEC Cuts Deep to Save Cartel
  • 11 hours Regular Gas dropped to $2.21 per gallon today
  • 32 mins Venezuela continues to sink in misery
  • 12 hours $867 billion farm bill passed
  • 1 day Sleeping Hydrocarbon Giant
  • 16 hours Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 2 days Sane Take on the Russia-Ukraine Case
  • 10 hours Global Economy-Bad Days Are coming
  • 16 hours WTO So Set Up Panels To Rule On U.S. Tariff Disputes

Will the Chinese Yuan Replace the US Dollar as the Global Reserve Currency?

Once again we are seeing articles and research papers stating the Chinese renminbi (yuan) is about to replace the dollar as the global reserve currency.

Here is a working paper by Arvind Subramanian and Martin Kessler at the Peterson Institute of International Economics stating The Renminbi Bloc is Here: Asia Down, Rest of the World to Go?.

A country’s rise to economic dominance tends to be accompanied by its currency becoming a reference point, with other currencies tracking it implicitly or explicitly. For a sample comprising emerging market economies, we show that in the last two years, the renminbi (RMB) has increasingly become a reference currency which we define as one which exhibits a high degree of co-movement (CMC) with other currencies. In East Asia, there is already a RMB bloc, because the RMB has become the dominant reference currency, eclipsing the dollar, which is a historic development.

Click here to read the full article.



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News