Could China’s yuan displace the US dollar as the world’s primary currency?

This appeared in The Millennial Source

For generations, the global economy has relied heavily on the United States dollar as a reserve currency. This means that much of the flow of international investments, transactions and debt obligations are done through the exchange of the US dollar.

Following the rise of the US as the premier global power after World War II, the dollar became the preferred currency to hold in central banks across the world as US influence permeated international markets.

Now, with China’s rise to that of rival global power to the US, Beijing is reportedly making attempts to push for its currency, the yuan, to occupy a larger global role.

According to a recent report by Bloomberg, several influential voices in China have been publicly pushing for the yuan to play an expanded role, including Fang Xinghai, a top official at China’s securities regulator, Huang Yiping, a former adviser to the central bank, and Zhou Li, an ex-deputy director of a government body that manages foreign relations.

Currently, as per data released by the International Monetary Fund, the Chinese yuan makes up just 2% of global currency reserves, while the US dollar makes up 62% of reserve holdings. The second-highest…