How the Renminbi Could Compete with the Dollar
On this episode of Odd Lots, we talk about what would need to happen for China’s currency to truly compete with the dollar.
There’s a lot of discussion these days about de-dollarization and whether the greenback will lose its standing as the world’s sole reserve currency. Generally, people seem open to it, but they also don’t see many good alternatives. The renminbi is the obvious candidate to take share away from the dollar, given the size of the Chinese economy and its role in global trade. But for various reasons, the currency isn’t suited to supplant the dollar.
On this episode of Odd Lots, we discuss what it would take for the renminbi to become the global reserve currency, and what would happen if it started to play a major role in global trade. We’re joined by Karthink Sankaran, a longtime FX veteran, to talk about what China would have to do if it really has global currency aspirations.