I do not believe that we will see rapid and fast change in global currency reserve situation. just for the reason that it is not in anyone's interest. For example Chinese hold so much debt dollars they certainly do not want dollar to downfall fast. I believe that we will see a slow shift as other currencies weight in SDR basket grow slowly. juan is added in SDR basket October 2016 weight of 10.92%. its weight will certainly increase in the long term .https://en.wikipedia.org/wiki/Special_drawing_rights
You are viewing a single comment's thread from:
SDR will be global currency reserve but it's not going to happen overnight.
I didn't realize that it's weight would grow, in a definite way, over time. Interesting. Thanks for the comment and watching! I'll look into things further, viljo.
These are political decisions so who knows what will happen? Chinese economy is so big that I'm surprised is if this does not happen. Chinese can not devalue juan in big way if they want to stay in the SDR basket. if I understand this correctly?