• In the future, the Chinese currency will be an international currency, playing a major role in Asia, as the US dollar and euro do in their respective zones.
  • Competing with the US dollar on the international level will take much longer, and it is a complex goal.
  • An international currency has four main characteristics: liquidity, “acceptability”, stability and “predictability”.
  • An international currency has four functions: a reserve currency, an intervention currency, a settlement currency and a reference currency.
  • History recalls that moving to a multipolar system (as regards all functions of an international currency) would require an significant (and negative) shock on the international currency, i.e. the US dollar.
  • Nevertheless, the Chinese currency is gradually emerging as an international currency, thanks to the efforts made by Chinese officials to make the yuan the major currency in Asia as a reserve currency, an intervention currency and a settlement currency.

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