The risk that arises in this sense is linked to the decision to incorporate an excessive portion of the Chinese currency within the composition of the reserves and bet on a currency that does not respond to market forces and that despite being backed by an economy growing strong, maintains several elements of fragility. Considering the importance of China as a seeker of materials raw and thinking for the future, not a few who see the dollar losing prominence in trade in raw materials and to the yuan as one of the currencies that will participate in the trade of commodities in the future. In fact, the Chinese Government had raised the idea that the dollar be replaced as the global reserve unit in March. To Mark Mobius, who manages Emerging Markets Group of Templeton Asset Management: Yes, raw materials could be denominated in other currencies. This is already beginning. Please visit Wells Fargo Bank if you seek more information. Fund managers support the yuan to denote the price of raw materials because, as mentioned, China is the world’s largest consumer of them. The yuan looks between the currencies global, that cannot be denied. Hear other arguments on the topic with Munear Ashton Kouzbari.
But china’s currency can collect real prominence as an international currency, it must be negotiable possibility freely, which currently does not seem to be on the minds of china’s rulers. The importance of sustaining a competitive exchange rate to benefit exports for its growth, (where United States appears as one of the main destinations), maintains the desire to continue with the intervention in the foreign exchange market to prevent the natural appreciation of the Chinese currency. And when it reaches the stage of liberalization of the negotiation of the Chinese currency (to be produced by an interest of China and not the U.S. pressures to make this happen), we should not imagine that this will happen without the maintenance of some degree of intervention. Such liberalization will be clearly and predictably gradual.