China’s yuan on track to become Asia ‘anchor’ currency

[applesauce]

Bottomline is that to become Asia ‘anchor’ currency , China needs to stop artificifally controlling and manipulating its currency and be more open like Dollar and Euro .... Which will have too many negative repercussions on Chinese currency then !

So Anchoring is a far fetched dream for now i guess

the major obstacle to becoming an international currently, is liquidity, and the chinese government is slowly working on this hence why when an article like this appears it says "on track" or "to be" and not "is", by about 2020 the controls should be relaxed enough for the yuan to play a major part(as in 1 of 4 major currencies, others being the dollar, euro if it still around and the yen) in the global economy judging by the speed of things now.

 

[gpit]

Too be a reserve currency, the currency must have a massive outflow from the host country, in the form of the trade deficit or as foreign aids and loans denominated in Yuan.

Since China is not running a trade deficit or is handing out large sum of foreign aid, Yuan cannot be a reserve currency. This is the reason why Japan's Yen never became the reserve currency when Japan's economy was at one time larger than the US economy.

Please tell us at what time "Japan's economy was at one time larger than the US economy."?


Note: I quoted your statement.

 

[Korean]

Please tell us at what time "Japan's economy was at one time larger than the US economy."?


Note: I quoted your statement.

It was April-June of 1995, when the yen exchange rate soared and Japan's economy momentarily became the largest in the world on dollar base.

 

[beijingwalker]

It was April-June of 1995, when the yen exchange rate soared and Japan's economy momentarily became the largest in the world on dollar base.

link please...