> I keep hearing people mention the Yuan as a reserve currency, but why would any country do that? China's economic and financial data reporting seems to be spo

> I keep hearing people mention the Yuan as a reserve currency, but why would any country do that? China's economic and financial data reporting seems to be spotty at best. Good question. And the answer to that is no serious country accepts Yuan as a reserve even after 10 years of China's GDP being number 2 in the world. People really don't trust Chinese government and it shows. The only reason the Yuan has a chance is because America chooses to not be a world leader in matters that affect the world (Paris agreement, UN, WHO etc). This leaves a power and money vacuum which disproportionately affects poorer countries. Think Sri Lanka or poorer African countries or sanctioned countries like Iran, Russia. These countries have only one country offering them development or aid or help. And that country's currency is Yuan and are happy to trade in Yuan. So slowly and steadily, yuan gets a place in their reserve mix and then becomes dominant because that's the only major country trading anything with them.