I read my share of worthless articles per day. For instance, every now and than a a handful of characters in the “dollar is going to collapse” crowd stick their head out of their basement and begin to write about how the Chinese currency (the renminbi) is going to take over the US dollar as the world reserve currency. They offer crumbs of evidence. Silly swaps or trade agreements that amount to peanuts. They do not show their readers the world currency composition of FX reserves. See below.
That 62% share of US Dollars amounts to 6.6 trillion dollars. That’s Trillion with a capital ‘T’. Shares of US dollars bounces around between 60% to 66% for the past two decades. Shares of Chinese Renminbi amount to less than 2%. Russia’s share is so insignificant it does not even warrant its own entry. The next greatest ‘threat’ to US dollar ‘hegemony’ is the Euro. That’s where the theater of the absurd is being played out with the Brexit and Theresa May.
Yet, there are authors who spend their time sounding off the siren about the Chinese Renminbi and the US dollar. I am not saying the US dollar will always be the reserve currency. I am saying there is nothing to indicate this is going to change any time soon.