Report: China’s Currency Will Diminish Dollar’s Role in International Trade

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Report: China’s Currency Will Diminish Dollar’s Role in International Trade

February 13th, 2016

Awake Goy

“The Chinese renminbi, barely visible in international trade of financial flows just three years ago, appears to be blossoming,” says William Wilson, a research fellow at the Heritage Foundation. “China is now the world’s largest trading nation, and more corporations, particularly in Asia, are beginning to invoice their business in [renminbi].”

Because of this rise, there is concern that the renminbi could displace the dollar as the world’s dominant currency. According to Brookings, as the renminbi becomes a prominent international currency, it will diminish the dollar’s role in international trade transactions.

Report: China’s Currency Will Diminish Dollar’s Role in International Trade

February 13th, 2016

Awake Goy

“The Chinese renminbi, barely visible in international trade of financial flows just three years ago, appears to be blossoming,” says William Wilson, a research fellow at the Heritage Foundation. “China is now the world’s largest trading nation, and more corporations, particularly in Asia, are beginning to invoice their business in [renminbi].”

Because of this rise, there is concern that the renminbi could displace the dollar as the world’s dominant currency. According to Brookings, as the renminbi becomes a prominent international currency, it will diminish the dollar’s role in international trade transactions.