China would certainly gains some advantages from having the CNY become the world’s reserve currency.
Steve Brown –
"Can China Dethrone US$ as Global Reserve?"
(Right-click title to see original story)
(Image source)
– Flash Points –
1 – It will be hard for the yuan to displace the US$ as reserve currency.
2 – Any devaluation of the US$ or in US bonds would hurt China.
3 – The holder of the reserve currency has a great “privilege.”
– Synopsis –
For various reasons, it would be difficult for the CNY to replace the US dollar as the world’s reserve currency. But it would not be impossible.Don’t Dump Dollar Yet
China has several close ties to the US dollar. For one thing, the CNY is essentially pegged to the dollar. Also, China holds vast amounts of US treasuries.
Dethrone Dollar Now
The one option China has is to reveal its supposedly massive holdings of gold, and then partially back the yuan with gold. The yuan would appreciate considerably, and that strength could help it displace the dollar as reserve currency.In the late 1990s, the partially gold-backed Swiss franc became so strong that it almost overcame the dollar – until it threatened the Swiss chocolate and cheese merchants. The Swiss powers that be quickly reined in their franc. But that too had the inevitable negative effects.
– Insight from Outside –
Given the growth and strength of the Chinese economy, it’s very likely that the yuan will eventually displace the US dollar as the world’s reserve currency.
Advantage China
Holding the world’s reserve currency might have some drawbacks. But it certainly has its advantages. If the Chinese are having any concerns about their yuan dethroning the US dollar, all they have to do is consider the “exorbitant privilege” it bestows on the holder. (Image source)
Previous posts in this series – "Death of the Dollar, Posts 1–30" 
I think in 2-3 years it will become a reality.
That's a reasonable estimate re the time frame.
Hmmmmmm....this is getting confusing. I think china should apply some diplomacy in their dealings ...
I still have to go back to understand the genesis of things
I believe most countries should "apply some diplomacy." But, these days, that seems to be a lost art.
i feel that is the only way out because everything is pointing towards china right now
Talking about deadlines at this time about the death of the US could perhaps be a bit hasty, for many reasons, one of which is the consequences that still do not have safe estimates of the pandemic that could occasionally accelerate this.
Clearly, the pandemic was a trigger for the current economic crisis. But the fact is that a crash was coming, and the pandemic just exacerbated the situation.
Believe me, these chines are too quick, they have very long term plans and their main mission is to become a superpower and slide America to no 2 positions. They seem to be doing well in their mission
Indeed, they don't get waylaid by short-term foolishness.
@tipu curate
Upvoted 👌 (Mana: 0/45)
The death of the dollar is slowly becoming a reality and it seems it's doom is actually sooner than expected
China should apply caution when dealing with the us dollars. They are at advantage now by holding vast amount of US Treasuries.
I am wondering what measures the US are taking to combat this issue of naira devaluation.