IMF adopted Chinese yuan as international currency the other day. Will Chinese yuan be a key international currency someday?
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1$\begingroup$ You have to specify what you mean by "key international currency". Some would say it was a key international currency even before yuan got its reserve currency status. $\endgroup$– Arthur TarasovDec 7, 2015 at 2:19
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1$\begingroup$ I think a international key currency is most used as international payment currency. It's US dollar now. $\endgroup$– Yuuichi TamDec 7, 2015 at 2:31
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"SDR inclusion does not mean... that the renminbi will rival the dollar as an international currency, at least not any time soon. The dollar is widely used globally in trade, in international borrowing and lending, and as the principal currency for official reserve holdings (about sixty percent of global reserves are held in dollars). Importantly, the dollar’s global status is a market outcome, not the result of a decision by any international body or of an international agreement. Private investors and governments freely choose to hold dollars because the markets for dollar-denominated assets are, by far, the deepest and most liquid of any currency; because the United States imposes no restrictions on capital flows in or out of the country; because of the quality of U.S. financial regulation; because the Federal Reserve has kept inflation low and stable for the past thirty years; and because the United States is large, prosperous, and politically stable."
This is the quote from Ben Bernanke's blog. Ben Bernanke is the former chairman of the Federal Reserve.
