Economic and political factors of transformation of the Chinese yuan into the world reserve currency

Abstract

The article considers controversial issues of the conversion of the Chi­ nese yuan into the world reserve currency. A review of opinions on this issue is given, factors that promote and prevent the nomination of the Chinese national currency on the role of the world’s reserve currency are identified. The economic factors that contribute the transformation of the Chinese currency in the world’s reserve currency, include the size of its economy, the position of the leader in world trade and industrial produc­ tion, the growing participation of the Chinese yuan in international transac­ tions and payments. Obstacles in this way are the lack of full convertibility of the yuan and its insufficient weight in global financial markets. Barriers are also political factors, such as China’s desire to expand its political influ­ ence in the world by increasing the role of the yuan in the global monetary system and the political system of China.