>> The yuan will never become a reserve currency as long as China maintain tight currency controls around importing and exporting it. It's very difficult to (legally) send CNY out or China.
Did you read the article? It seems that may be changing.
>> The yuan will never become a reserve currency as long as China maintain tight currency controls around importing and exporting it. It's very difficult to (legally) send CNY out or China.
Did you read the article? It seems that may be changing.
Neither the word "free" nor "float" is present in that article - so I'd say no the article does not discuss that.
China's goal is weakening the dollar, I don't think they are after reserved currency status.
In any case, moving from USD -> Yuan would pose the same risk as people may perceive with USD today.
Having a single currency controlled by one nation is too risky.
China doesn’t broadly want a weaker dollar, at least not against the yuan. Until very recently they actively worked to strengthen the dollar in the pair.
Chinese currency policy is broadly about controlling their domestic population not about foreign policy. Between keeping their domestic manufacturing industry going and keeping their more affluent populations power in check you’ll find most of the motivation for what they do on currency policy.
This move gives one less reason to allow a currency transaction and thus one less way for domestic manufacturers (and importantly their management) to get around those capital controls.
As European Chinese business increased that became more important and Duetche is dominant in fx, being able to handle effectively everything now means European businesses won’t complain either.
"weakening" and "strengthening" often confuses lay peeps really hard on this subject, as a plain source of confusion. "cheaper" and "more expensive" are frankly better words
It only avoids the confusion if you're specifying for whom it's getting cheaper or more expensive