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It is so denigrating to have one's Central Bank governor beg to be admitted to the elite circle of "international reserve currencies" when in fact, China has the world's second largest economy, and by its trade volume alone, could have persuaded its trading partners to hold enough Yuans as reserve currency in order to hedge against fluctuations in the Dollar, Euro, Yen and Sterling. Over time, holding Yuans becomes a long-term hedge for countries that plan to buy up Chinese businesses or factories which need a long time to accumulate the requisite capital for the purchases.|
China, as the world's second largest economy, does not have to surrender its exchange rate, its export price, its export earnings, in order for its currency to become an international reserve currency.
China, can and should, immediately reset its exchange rate down to 6.50 CNY/USD, to boost its export trade, to boost its foreign currency reserves, and to grow its factories and businesses, at 8% per annum, and by so doing, would make the Yuan even more attractive as a reserve currency to its trading partners than merely having a 6% quota of the so-called "Special Drawing Rights" of an IMF that is ten times poorer than China itself.
The YUAN is already a global reserve currency, that needs no IMF approval, and requires no concessions of trade, of amount of currency reserve, to achieve. The YUAN is the bird in hand, while the International Reserve Currency status is the one in the bush - let it go!!!