Could China’s Yuan replace the U.S. dollar as the world’s dominant currency? Here’s how the Asian nation's trade supremacy is quickly boosting its reserve status

Prediction  

Economists including Barry Eichengreen of the University of California Berkeley and Camille Macaire of France’s central bank published a paper analyzing the yuan’s potential as a reserve currency. The researchers argue that replacing the dollar isn’t going to be easy or quick. However, they found evidence that yuan reserves were steadily increasing in countries that had tighter trade relations with China.

This growing influence could make the yuan an alternative to the U.S. dollar in a “multipolar” world. In other words, China might chip away at the dollar’s influence over time. The study’s authors said the renminbi’s current position was similar to the U.S. dollar in the 1950s. Based on that comment, it could be just a few decades before the yuan gains parity.