January 18th, 2011
06:00 PM GMT
Share this on:

Beijing, China (CNN) - In a battle between the Chinese yuan and the U.S. dollar, which currency would you bet on? Currently, the dollar reigns supreme in the world of trade and finance. But HSBC economist Qu Hongbin told me, longer term, he would bet on the yuan.

The Chinese government is making a big push to raise the stature of its currency. Hardly anyone uses it outside China. But, with China's economy now the second largest, authorities here are actively encouraging business people to use the yuan. The government is allowing Chinese companies to conduct some international business in yuan. It is allowing yuan trading in Hong Kong and, to a much smaller degree, New York. It is also encouraging companies to issue yuan-denominated - or "dim sum" - bonds.

The yuan's value is still determined by the Chinese government, raising tensions with Beijing's trading partners, including the U.S. Even so, Qu believes China's recent moves will raise the yuan to be among the top three currencies in global trade. "Within five years' time," he said, "one third of China's cross border trade will be settled in yuan rather than dollars."

Chinese President Hu Jintao called the dollar a "product of the past" ahead of his meeting with U.S. President Barack Obama. Will the yuan be the currency of the future?



soundoff (65 Responses)
  1. Manuel Vilhena

    Interesting article. In the future and according to trends it seems that the Yuan will have a stronger trade value but at the moment dollar is the business currency and it is not a product of the past.

    January 18, 2011 at 7:27 pm |
  2. Ahmed Ilyas

    the yuan
    http://www.fattaurus.com

    January 18, 2011 at 10:16 pm |
  3. NJ

    The U.S. will always be the world's richest, greatest and famous county.
    America is the heart of the world, even though it has some cons.

    Despite how the bad economy has been in the past, it has been like that all over the world... but we are improving.

    God Bless America and all Christians around the world!

    The only CONS with America is that they do not use metric system, and that Good Friday is not federal holiday.

    January 19, 2011 at 1:28 am |
  4. SG Entrepreneur

    I would definitely bet on the yuan over the US$. With Bernanke printing US notes like there is no tomorrow and an economy that relies on consumer and federal debt to keep churning, the heady days in which the US dollar reigned supreme are very much over. For the next 20 years, Asia will most likely be the central player determining not just economic policies, but cultural and political ones as well. Let's hope it keeps the dialogue open as much as it keeps its markets open.

    January 19, 2011 at 2:43 am |
  5. a member of PRC and CPC

    Being a Chinese ,I am so proud of my country and absolutely,my currency,Yuan.I am pretty sure that it will be one of the most important currencies in the world in 10 years. Then,most of the people in the world will be familiar with our leader-Mao Zedong just as we are familiar with Washington.

    January 19, 2011 at 2:55 am |
  6. Klauz

    Why doesn't this article mention the Euro? Currently the Euro is the currently in widest circulation.

    Total EUR currency 792.53 billion EUR * 1.48 (exchange rate) = 1,080 billion USD
    Total USD currency in circulation 859 billion USD

    And the EU economy surpasses that of the US.

    2010 GDP in USD
    European Union 16,106,896
    United States 14,624,184
    People's Republic of China 5,745,133

    I guess Americans are just fixated with China for some reason.

    January 19, 2011 at 4:22 am |
  7. charlie

    "The yuan's value is still determined by the Chinese government" The truth about this matter is that Chinese government and their economic policies are not trusted by many international business leaders around the world.
    This strict control over Chinese yuan and inability of the world business leaders to trust Chinese economic policies will always make the Chinese yuan less popular than the USD.The factors that control this issues cannot be determined by the Chinese government or US Government independently but by the independent international business leaders and certain economic events and policies.The US having a BAD economic period at the moment does not mean that their economy will not improve.Infact,its part of the trials of free and independent economy which most business leaders want to see because it helps them make sound and long term decisions compared to a government controlled economy which is highly unpredictable.
    The Chinese government must first focus more on improving their popularity and trust with the business leaders all over the world first before going into the politics of their currency.Its only 1/10 international business men will prefer Yuan over USD trade in the international currency at the moment and that one most probably will be a Chinese person.
    People might come and buy goods and set up production facilities in China as investments,But when it comes to long term currency stability and flexibility and international commerce/ trade, its very obvious that the USD has been tried, tested and trusted over a long period of time.Apart from China related trade/business,i have not seen anybody that wants to use China Yuan to transact any international business yet.Yuan does not have that reputation yet and might take a very long time to have it.

    January 19, 2011 at 4:42 am |
  8. moma2010

    NJ OH PLEASE! GET REAL! U Have such arrogance besides lack of education!!!!! Times change, Powers change, and to think the worst thing about us is lack of the Metric system and not having another Federal Holiday- I suppose u want it because of ur Christian beliefs. I can tell u have so much love for everyone just like Jesus taught, and MLK preached.

    Being a caucasion American since before 1800's, I love America but I respect others and doubt our leaders ability to fix our economy overnight and get all others to respect the USA and allow us to continue to be the supper Power.

    How can we keep being so proud when so many are jobless? W/O medical care, poor educational sytem, millions in the prisons. Homelessness, Yet polititions and milionairs and richers keep getting richer-the poor .poorer.

    We are near our end of being a super power. we dont build, farm, or use tech or educate well. What do u expect???? Please everyone remember it is not OBAMA's faught.

    January 19, 2011 at 4:55 am |
  9. Just a HS'er

    Simply put, an economy cannot, and will not prosper under strict regulations. The Soviet Union encountered a similar problem in the late 1980's, where after years of communist control, their economy could not keep up with that of other modernized nations. Gorbachev implemented parastroika and glastnoste [sic] to help stem the inevitable fall of the Soviet Union's economy. A similar event may happen within China. If the government attempts to change the Yuan's value without backing it up, then inflation would surely skyrocket due to a bill that has no value. John Smith, in his "Wealth of Nations", stated that an economy can only flourish with the least government control. If China would heed that warning, which they are not at the moment, then this 'rise' of China's economy could sustain itself for many years to come. However, if the United States is able to cut taxes, which would actually increase tax revenue (Reagan's administration), balance the Federal budget by cutting out unnecessary programs, and finish the war in Afghanistan, then the United States will dominate the global economy for years to come.

    January 19, 2011 at 5:01 am |
  10. JesusNeedsABreak

    The $ had its day and the forecast is bleak, but the good news is gold is going higher, if you have it.

    January 19, 2011 at 5:17 am |
  11. QuinClark

    @NJ,

    Whatever you say Capt. America, what ever you say.

    January 19, 2011 at 7:40 am |
  12. CurrencyBacker

    The question I have is " what is the basis by which the curency is backed"? With the dollar I understand it is back by the taxpayers paying the US goverment in taxes for the US goverment to issue bonds which back the dollar?
    How does China back the Yuan and how is the EURO backed. Which ever currency has the safest (least volital) and secure (supported by some sort of reliable value) backing is the one I support. I hope their is a currency expert following this post and would like to hear more about my question.

    January 19, 2011 at 9:06 am |
  13. BB

    Considering how the Yuan is purposely kept weak to prevent China's collapse, I'm going to bet on the Dollar. I can't see other countries risking China having control over an international reserve currency either.

    January 19, 2011 at 9:48 am |
  14. Larry

    Nothing wrong with being #2

    January 19, 2011 at 10:30 am |
  15. zwolennikprawdy.blogspot.com

    Both are going to reach zero! Only NATURE counts!

    January 19, 2011 at 10:42 am |
  16. JV

    Let´s see what is going to happen when China becomes ( and if it becomes and how it becomes) a free country. After all is only one more aspect of labor exploitation. Who remembers Japan and the Japanese miracle ? remember how American business man would flock to Japan in the 80´s to study the Japanese model ? America ( with some corrections) would be reigning as the model to follow.

    January 19, 2011 at 11:23 am |
  17. GUNGHO

    Help the Dollar, well stop buying Chinese Junk – buy Amercian and if you look you will find American made goods ?
    possibly a few cents more, but then again it will last ? check your Wal-mart stores, they now have food from China -
    after living there 8 years . – let me tell you – never ? from all the places I been, no bigger dirtballs then the Chinese.
    we have 40.000 plus Chinese Restaurants in the US, check the Kitchen prior to eating ?
    PS @ a member of PRC, make sure you remain there, and MAO, well check up on him, Hitler was a Saint compared ?
    Regards
    Korea and Vietnam Veteran and proud of it.

    January 19, 2011 at 1:00 pm |
  18. Buzzlightyear

    US debt crossed $14 trillion on Monday. This means that every Americans would have to tee up $45,000 to pay off this debt today. Yes, $45,000 per person (not family)!!! Our country's credit limit appoved by congress is $14.3 Trillion, so our country is almost maxed out in terms of debt limits. )f the $14 trillion debt, $2 trillion is owed to China alone which is why China is making so much noise in the the international arena. The US dollar is still the most dependable and global currency. However, in order to sustain this for next 30-40 years, we/Americans eed to start thinking our spending habits. We need to spend more on American goods and services even if it is 5-10% more expensive. Remember, Chinese economy is thriving mainly because of the huge exports to US and the consumption by Americans. They are able to keep their cost low due to cheap labor i.e. underpaying their own people. If the US spending is shifted to American products, it will start balancing our trade deficit, reduce dependency on chinese imports, and increase employment/business opportunities here in the US. Since our country believes in an open economy, the government will not impose undue restrictions/tariffs on imports. However, we as US citizens, needs to make this educated decision regarding our spending habit and need to invest more in our local businesses. We need to stop sending manufacturing, IT support, R&D, to other countries. This is simply weakening the future of the next generation. I have been to the emerging countries and they are simply booming based on jobs exported by countries like US, UK, Canada. We need to keep the intellectual knowledge, IT expertise, R&D in our country rather exporting these jobs outside. This is really Economics 101. To fix it, each of use need to own this issue, starting thinking of where you are spending your dollar everyday, and make the difficult decision to invest more in American goods and services!

    January 19, 2011 at 5:35 pm |
  19. Common Sense

    Yuan, of course. It's a no-brainer, the US and the whole world is begging China to increase the Yuan against the USD.

    January 19, 2011 at 6:26 pm |
  20. Hansa2

    It is sad, but some right wing nuts are still believing that we are the best country in the world. We are 27th in education, 32nd in health-care, 17th in standard of living and thanks to Bush 2 we are one of the most hated countries in the world. We are like the Roman Empire in 450 AD. Going down the tubes!! Hopefully we are going to to solve our problems so that we can return to be a great country like in the 60th. Capitalism bit us in the butt and should be abolished. The upper 1 % are getting richer while the rest of us goes broke!

    January 19, 2011 at 7:33 pm |
  21. trader

    well , i have a trading company.amd i have no business with china or america. but i suffer a lot lost by using dollars.
    because international standard has to use dollars or EU. sadly, if there is a chance , i would use yuan instead. most
    of trading company think this so.

    January 19, 2011 at 7:57 pm |
  22. keith, San Diego, CA

    It's no brainer, $. Even the Chinese are so rich now that they have more money to buy US$'s. Whether a currency can become a strong world currency does not depend on how much money this country has made, it's the strength this nation has that can support the stability of the currency. US for a century has tremendous creations in technology, science, defense and all areas. We have GE, Ford, GM and now Google, Apple, Microsoft, you name it. Chinese don't have any of those except copy some form. Yeah, they have cheap labors that made money to buy US dollars and made them appear to be rich, but that is not behind the nation's strength. We haven't seen any strong currency coming from purely a cheap labor made country yet, and there will no one like that.

    January 19, 2011 at 10:51 pm |
  23. Gina

    So long as the Chinese government controls the yuan, the dollar is the onlyl way to go, especially since we just returned from a 10-day trip there.

    January 20, 2011 at 12:09 am |
  24. Hanoi-moi

    US dollar took years to be famous so I don't think Yuan can be the same situation in 10 years. Chinese goods is cheap and they are everywhere but if we see something bad quality we will say because it is from China. We say it naturally as it must be.
    China must keep going ahead and stable then America stop going... in that case it takes 20 years I think.

    January 20, 2011 at 12:54 am |
  25. Andy

    The US Dollar is one of the biggest weapons that the US hegemony the world, the other one is the 10000 nuclear missiles, I'm so scaring, they can destroy the earth maybe moon many times! So scaring!

    January 20, 2011 at 1:14 am |
  26. TOM

    WATCH OUT MY FRIENDS, DONT FORGET THE " REAL" IF YOU KNOW ABOUT IT. IT'S OUR BRAZILIAM BABY... COMMING SOON, SURPRIZE !!!

    January 20, 2011 at 2:40 am |
  27. piaofu

    US is currently suffering hyperinflation.

    The US$ is now a worrisome reserve currency
    for every country.

    Whereas the Yuan is fitter and stronger, and
    desirable amongst
    Asian and emerging countries.

    If China selloff US securities (US bonds) it could start
    an avalanche of selloffs by
    Asia, middle east and other emerging countries.

    That, my friends, would be the death of American economy.

    So, American comentators should cease that
    out of place, nose in the air, atitude towards
    China.

    US world economic dominance is history.

    January 20, 2011 at 4:02 am |
  28. archiker

    What I understood was, Hu said "the international currency system headed by dollar was a product of past", not the dollar itself
    not trying to be worm but don't want to be trapped

    January 20, 2011 at 6:48 am |
  29. US is in hyperinflation

    US economy is suffering from hyperinflation.

    The entire world is watching the US$ closely as it declines
    in value as Fed continues to print more money out of
    desparation.

    Under such circumstances, who in the right mind would buy
    US$ ?

    The real danger is a US$ collapse if the rest of the world
    abandons the US$. And this CAN HAPPEN!
    So, US needs China's support to prevent such a catastrophe.

    American political commentatiors are making misleading statements
    and poisoning the public with unfound accusations about China..

    They are speaking far from the truth, which is -
    China is helping US get out of insolvency.

    January 20, 2011 at 7:07 am |
  30. vkmo

    Dollar is the world currency. Yuan value is fake – it is tagged to a false conversion rate to the US dollar- that govt can't be trusted.

    January 20, 2011 at 7:54 am |
  31. teertha

    kvmo......yeah i agree. that $ is world currency.....bt yuan will be of future.......and its not fake as u said

    January 20, 2011 at 5:48 pm |
  32. BIllClinton

    And the longer the U.S. keeps President Teleprompter in office, the weaker the Dollar will become.

    Thank You, N0bama.

    January 20, 2011 at 6:21 pm |
  33. FourChan

    Doesn't matter – China has not only acquired all of the U.S. debt, but they are now buying up American business holdings, manufacturers, land, etc. all facilitated by ignorant Americans. By the time anyone notices, America WILL BE OWNED by China and the Middle East oil producers. ::: (insert evil laugh here) :::

    January 20, 2011 at 6:27 pm |
  34. Phil G.

    If I had a hundred million dollars,I spend half of that for Chinese currency.

    America's debt guarantees a substantial return on investment.

    I'd double my money,take out my initial investment and let the rest rise more.

    Unlike America,China actually protects the value of it's currency instead of devaluing it every five years because of spineless politicians and greedy business ceo's

    January 20, 2011 at 6:36 pm |
  35. Philip S.

    Are Chinese companies (located in China) legally permitted to purchase from other Chinese companies (located in China) in USD currency or must they only trade with each other in RMB?
    If this is the case, are there any ways of "working around" this requirement?
    Thanks

    January 20, 2011 at 9:58 pm |
  36. ugur a.

    Japanese economi was number#2 for long time and Japanese Yen never become ruling currency.Same time Euro will be the next ruling currency my opinion if Europians get their act together.So people don't worry abouth China and yuan.

    January 21, 2011 at 2:19 am |
  37. Sebastian D. Martinez-Hujarshi

    I don't think the Chinese currency will prevail because, if China promotes their money as strong and superior and people begin desiring it, by the simple law of supply and demand the Yuan will it go up.

    China does not want for that to happen, fewer people will be able to afford their goods. With regard to the EURO, come on!!! Is a pipe dream formed by a had ful of countries, that are completely different from one another, ready to wage war on each other in any moment and the Europeans don't spend money. 6000 years of conflicts and now money policies suppost to band them together?. Watched them go down in flames this year.

    Let's not forget that America won 2 world wars. Yes, the armed forces, that's one way for people to trust and feel secured about the dollar.

    Worst case scenario in the event a new form of currency appears (Not the Yuan or gold) more like Oil or commodities. Don't worry!!!- Read Below.

    Argentina became insolvent in 2001, literally no money on the street to buy simple things, however they rebuilded, because they realized that it was not money that they needed, but their human and intellectual capital resources.

    Last, for all that put their trust on gold, remember that during a real crisis or countries that were in the middle of wars, their people had put more value in pots, pans and a bag of rice than any other form of currency.

    Something to think about.

    January 21, 2011 at 5:19 am |
  38. piaofu

    I beg to differ.
    Because I think there is now a new shcool of thought
    in China regarding Yuan revaluation.

    And Chinese economists have hinted that
    slightly higher Yuan, could mean better purchasing powers
    of Chinese consumers.
    Which is good for the economy and should benefit local factories
    including US factories based in China.

    It should be noted that while US factories in America
    were hard hit following the great Wall Street
    induced financial debacle in 2008,

    US companies in China were making big bucks!

    A highter Yuan is quite timely, since It should help
    deflate the rising inflation (5%) in China.

    A double edge sword if you like.

    But I think China, having had enough of centuries of being
    subservants to the colonialist (Americans included),

    would nowadays do things at
    their own pace and pleasure.

    So the Yuan would be appreciated
    when they feel comfortable enough.

    And they arent certainly doing it because Reid has called
    Pres Hu a 'dictator'.

    This, is something nose- in- the- air , empty pocket Americans
    need to understand from now on.

    January 21, 2011 at 8:33 am |
  39. anil

    absolutely,the,yuan I am quite certain will be the most important currency in the world in 10 years. then most of the people in the world will be familiar with leader-Mao Zedong just as we are familiar with washington today.

    January 21, 2011 at 1:47 pm |
  40. Gary

    @ a member of PRC and CPC....Whar exactly are you proud of? Are you proud that your country makes nothing of their own? Are you proud that your country steals other nations inventions, and then have their citizens mass produce these stolen items, all the while paying them peanuts? Are you proud that if you speak out against your Government, you'll be put in a labor camp? Your country and it's economy will crash sooner than later, and the reason is simple, every country your Communist slave drivers do business with rip off the other side. How much longer is that going to be over looked?

    January 21, 2011 at 2:06 pm |
  41. Chris

    The Chinese leader’s philosophy through history is never cease to expand their power. From a small part along the Yellow River (Huang He) and the Yangtze River valleys, Chinese leaders invaded other smaller kingdoms under a banner of “unity of people groups” to build a great empire. Today they want to use a power of cheap labor of China to compete in the global economy and to raise the value of Yuan. However, the current Chinese society structure has no strong foundation. They have to face with spirit of democracy within their people, injustice society, the great gap between rich and poor people, the independent of Tibet and Taiwan and conflicts with other countries such as Japan, Korea, Vietnam, and Philippines on issues of land and islands. China becomes a power country because of the world economic crisis but its power will be balance after a recover of the world economy.

    January 21, 2011 at 6:55 pm |
  42. Peter

    Maybe dollar is better than yuan

    January 23, 2011 at 3:55 am |
  43. kelfon

    Hey is there such thing as an US $2 bill? Never seen one until this picture...

    January 24, 2011 at 10:00 pm |
  44. AZEDDINNE

    every country want dollar to grow. why? because when they buyed dollar it was higher. and people had lost half of their money. why did dollar fall? in 2008 because us had spent to many money on selfdefence weapoons and nuclear

    January 26, 2011 at 12:17 pm |
  45. LAWRENCE

    i have a trading company, honestly i do'nt like use dollars, they are very unstable since use deside open usa currency print machine. i use yuan more often now. said, more than 1/3 earth population use yuan. usa just do'nt know they are lost their credit on USA since they deside print more cash from "imagination" without gold base currency policy.

    now China become #1 gold provider, its obivious that more people will use Yuan!! and its value is keep increase!

    February 2, 2011 at 2:04 am |
  46. Darlington Nado

    Ha! ha!! China is doing great jobs by their cheap goods, it has affected the poor positively that they can by good cheap things in the market while negative to the rich and market competitive countries and continents like Usa And Europe. Concerning the issue of currency China yuan has a long way to go to compet with Usd or even Euro. Abeg America is the strongest and land of oppurtunity, is heaven on earth, take or u live it.

    February 6, 2011 at 10:10 am |
  47. Darlington Nado

    China of yesterday, China shoud knw that if America, Europe and Africa go independent depite the fact that we are all important to each other, by bringing down the price of their goods like China and maintain quality which China lack, i think they will on a ballance and stop making noise. China stuffs are flashy but dos'nt last.

    February 6, 2011 at 10:21 am |
  48. bradz

    GROSS FOOD FROM CHINA IS INVADING THE USA! STUPID CITIZENS DON'T GIVE A CRAP. JUST TO FEED THEIR FAT BUTTS WITH THE CHEAPEST FOOD AVAILABLE. WE ARE SELLING OURSELVES TO THE CHINESE AND WE ONLY HAVE OURSELVES TO BLAME!!!!!!!!!!!!!!!!!

    February 7, 2011 at 12:37 am |
  49. LIN

    People said the same thing about the Yen in the 80s. Also a lot of people are posting because they hate the USA or China. You don't need to read this to see that for yourself. Give it ten more years and we will see. Don’t forget about the Euro, India and Brazil. A lot can happen to change things.

    February 7, 2011 at 2:26 am |
  50. Andy

    Just check the forex chart, US$ has been decreasing its value againts YEN, yet $ still is used as international currency trade.

    February 7, 2011 at 3:32 pm |
  51. jjheinis

    The dollar has gone down historically over the years. In 1964 the exchange rate was 4 SFr to $1 and in 2011 it is 1.17 per US$. What would you choose? The US has chosen guns over butter and has let its infrastructure deteriorate as well as its manufacturing base. In Limbaughland, a national approach to health care is being dismantled by Republican/Tea Partiers who have no alternative. This will leave the US at a competitive disadvantage vis-a-vis the rest of the World. Now, make the decision as to where you would invest your money.

    February 7, 2011 at 4:28 pm |
  52. JM

    Things should be clarified here. Yes US debt has reach higher marks and $14 T is a fair number. One should know only 7-8% of that is owed to china. The rest is to the public (people of the US and other countries). US pulls in over $5 T dollars a year in income tax alone. Often we are in debt b/c of too many are milking the system when people of poorer countries like china have work hard to grab a piece of the pie. China has over 3x the population as the US. To even consider they have equal richness they have to have 3x the gdp as the US. Now they only have 1/3. The US dollar will always dominate. The world doesn't yet have much respect for china but US has been losing that also. We all thought the Japanese Yen would dominate the US dollar but what happened there? China is about as good as stealing ideas/secrets as they are good at cheap labor. China will always be seen as followers. IEEE has released an article on a invention on hardware (chips) which will prevent reverse engineering. Its a huge break through. We shall see if this plays a factor to their bootlegged ipad or maybe it all was too late.

    February 11, 2011 at 10:01 am |
  53. Tom Cruise

    Have we forgot the "multi-polar" views of the world? In the next 20 years, it will be the league of 3 – USD, EUR, CNY that thrives together in the global economy, with Pound, JPY, and Swiss Francs in a lesser role.

    Remember, if you look back at history, though the US overtook Britain in GNP terms in 1889, it was only in 1950s that the USD unseated the Pound as the main trading currency in world trade. It means that the Pound remained the dominant world trade currency for almost 10 years after the Second World War.

    China's GNP is only 1/3 of the US's today. Dependent how you look at this, it will take another 15-17 years before China overtook the US in term of GNP (around 2016-2018). As the Yuan's role is limited in world trade currently and Chinese steps to open up the Yuan as a free-trading currency will take many more years, do not expect the Yuan to overtake the USD so soon.

    So the best bet is to keep 50% in USD denominated assets, another 25% in EUR denom and the rest 25% in Yuan.

    February 18, 2011 at 3:52 am |
  54. 王云

    we must be careful about the praise from Americans.

    February 20, 2011 at 5:26 am |
  55. IACCAO PHIL

    US DOLLAR IS DYING?

    February 22, 2011 at 10:48 am |
  56. ben932

    In short term, look like US is determined to make China Yuan stronger by keep printing US$, as China is stuck with US$990 Billion Treasury Bond.

    US will find ways to stop China from making China Yuan become "the currency of the future".
    Like I said before, US is going be the winner of this currency war.

    In long term, US$ will still be the world main currency.
    I won't bet on China Yuan.

    February 25, 2011 at 2:20 am |
  57. Jonathan A

    Inflation and a possible housing bubble is a headache for Chinese authorities now. First, China has to assure the market it has control over these problems. Again it will be virtually impossible to maintain the yuan pegged at a fixed rate and have trade conducted in that currency at the same time.
    Finally, other emerging economies with similar potentials for growth like India, might not be so interested in trading in Yuan.

    So it is possible that the yuan take over the dollar as the main currency of trade but highly improbable

    February 27, 2011 at 11:21 pm |
  58. jonas

    Yuan will take over nothing for ever.

    April 26, 2011 at 10:56 am |
  59. mistzak

    Australian dollar will be the stronger than both.

    April 26, 2011 at 11:56 am |
  60. obsy

    with interest rates at 0, the dollar is weaker. commodities will keep going up for now.

    April 26, 2011 at 11:59 am |
  61. some say yuan, I say yawn

    Nobody in the world trusts the Chinese. They still are peddling that middle kingdom mentality. Until they stop drinking that coolaid, they will never be world players, they will only be a fascist state on the march. As soon as those infants fully open up their currency to real world markets, you'll see a very different picture. China is headed for Balkanization in a big way.

    @Americans – stop purchasing Chinese goods. Just stop buying them for 6 months, that's all I ask. You will see who has the gold and what the response is. Stop fueling the furnace. Just do not buy that garbage.

    April 26, 2011 at 10:30 pm |
  62. Larry

    The USD will continue to be the dominate trading currency into the future. One commenter noted the differing regulartory environments between China and the US. China is far too controlling of its currency and economy. While the Communist regime proclaims exuberance over its climbing economy and brags to no end about its success over the US, it lacks faith in having a full market economy like the US. At present, China is a time bomb readying to go off. Inflation is pushing at the seams of their economy. And, once it takes root, the Chinese government will have to raise interest rates substantially to cool off their growth. In the meantime, they have an ever-growing socio-economic problem in their outlying regions, where most of the population lives. Once interest rates climb, unemployment will grow substantially in both urban and rural areas. The US though is in a political stranglehold. The polarizing forces in Washington may have the effect of not allowing the US economy grow at a higher rate than it should. The result will be slower than nominal growth for next few years. Nonetheless, the US will have the opportunity to pull even further ahead once the great Chinese recession takes place. Once that occurs, probably within the next 15 years, China's GDP will significantly be affected, allowing for world-wide opportunities for the Americas and Europe. In any event, the US currency is safe at being the dominate business currency and world reserve currency.

    April 27, 2011 at 10:49 am |
  63. g. lee

    china is in fashon as japan was in the 70's. at least japan was a democracy. china wont work. cant manage an economy that big with totalitarian rule. no safety valves for discontent. plus they are evil.

    May 24, 2011 at 12:09 pm |
  64. Live Free

    As long as the US citizens are the ones doing most of the spending and using USD. Then it will remain dominant no matter what the value.

    November 3, 2011 at 5:48 pm |
  65. icon pack

    P.S. Please review Approved car Icon from car-icon-library

    September 21, 2012 at 6:55 pm |

Post a comment


 

CNN welcomes a lively and courteous discussion as long as you follow the Rules of Conduct set forth in our Terms of Service. Comments are not pre-screened before they post. You agree that anything you post may be used, along with your name and profile picture, in accordance with our Privacy Policy and the license you have granted pursuant to our Terms of Service.

About Business 360

CNN International's business anchors and correspondents get to grips with the issues affecting world business, and they want your questions and feedback.

 
 
Powered by WordPress.com VIP