Will the Chinese Renminbi become the next International Reserve Currency?
It is not a matter of if, more a matter of when? It is inevitable that the renminbi will become the next currency to become international, the bigger question will it displace the dollar as the reserve currency. Already accounting for 10% of world GDP (15% measured by purchasing power parity rather than market exchange rates) and 9% of world trade. Moreover, in 2011, it is estimated to have accounted for about one fourth of world GDP growth. These numbers are only going to be higher by the year, estimates vary from all kinds of sources, Goldman, J.P. Morgan, Citi Bank all say something between 10-30 years as to when China will account for more of the world’s GDP than USA.