China’s Plan to Make the Yuan the World’s Go-To Currency
I would argue: the only reason the US Dollar is the world&#x27;s reserve currency is because it was created like that at the Bretton Woods conference shortly after the end of World War II. This was only accepted by the other allied nations because US Dollar was declared convertible to gold, at $35 per troy ounce. This, however, only remained the case for foreign central banks until 1971, when the promise was defaulted on. So the dollar, in its current form, was born a gold certificate, that then transmuted into a currency. I doubt the Yuan -- or any other currency at all -- can replicate this, and I think that would be necessary.<p>I see no reason any central bank would want to swap out their Treasury bonds with Chinese government bonds (Treasury bonds are already too illiquid in times of crises, which is when we really need it), or any reason either consumers or merchants would want to start using the Yuan, other than to pay for imports from China.