Or, their economy could implode.
Kind of hard for it to be a reserve currency as long as the CCP is willing to manipulate it.
Remember how the CCP let it fall as a rebuke to the tariffs?
China is gunning for the yuan to be *the* world reserve currency.
China can not handle national calamities. They feel the pain of not being able steal themselves to success.
Could not, too.
Ha Ha, this world doesn’t have 10 years left.(the Age of Grace).
“could” is a big word.
Could but WILL NOT as long as the government maintains currency controls. The government would have to allow its currency to float for its currency to be used by even its partners in trade, no less by third parties.
To be sure, the incentives for returning to economic liberalization are enormous. But, the risk - from the government’s perspective - is also high. The risk is losing control. The takeover of Hong Kong tells us what choice the government will make.
Each time China has made their currency convertible to the currency of other countries, notably the dollar, billions of dollars have fled the country. The scramble to buy assets in the US is called capital flight. If they pay x for something and only get .5x back when they sell it, that beats losing everything by leaving the money at home. The idea that Chinese money will be a viable currency is ludicrous.