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> What would China actually need to do to make the RMB a global reserve currency? My understanding is that in the long-run, you cannot be the world’s reserve c
by andsoitis 9mo ago
> What would China actually need to do to make the RMB a global reserve currency?
My understanding is that in the long-run, you cannot be the world’s reserve currency AND hold a trade surplus. It is called the Triffin Dilemma.
- seanmcdirmid 9mo agoThey also need to be willing to soak up (borrow) excess RMB with a decent rate. Oh, and they have to let it freely float, obviously.
- thunderbong 9mo agoThank you. Didn't know about this. Very interesting. https://en.wikipedia.org/wiki/Triffin_dilemma https://en.wikipedia.org/wiki/Triffin_dilemma
- Muromec 9mo agoThe Dutch disease of sorts, where your main export is just money
- deleted 9mo ago[deleted]