1/ Want to become the global reserve currency? Do you think this happens overnight? Here is what is required.
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1/ Want to become the global reserve currency? Do you think this happens overnight? Here is what is required.
2/ The global reserve currency has to faciliate trade. This is both commercial, i.e. merchandise, and financial.
3/ What is required is infrastructure, depth, liquidity, and sophistication. All aspects are needed and if any are missing, there can be problems.
4/ Ultimaely, a massive marketplace has to be developed. We saw this with USD. It is something that requires a lot of effort and massive resources.
5/ The biggest thing is that private enterprise has to buy in. All the government mandates in the word mean nothing, especially internationally. Private business decides what the reserve currency is, not central banks or govts.
6/ This all takes a lot of time and is a lengthy process. People seem to believe it happens overnight.
It will be decades before anything happens to the present reserve currency.
If this is what it takes. China can become the reserve currency of the world in a decade or two.