THE PHENOMENON OF YUAN INTERNATIONALIZATION AS A STAGE TO RESERVE CURRENCY STATUS

Abstract

The global financial crisis of 2008-2009 and the subsequent political and economic consequences of the modern world have led to the permanent state of global turbulence, driving participants of the global financial and economic environment to look for ways out of the current realities, including the way in the direction of creating alternatives to US dollar in foreign exchange - the so-called reserve currency. The article disputes that the transition of currency to the status of a reserve one is a long, multi-step process. And an important step in this direction is the internationalization of said national currency. The author identifies the factors influencing the process of currency internationalization. Also, the article discusses in detail the measures being taken by China to convert its currency into one of the world’s currencies, and states that one should not lose sight of the fact that the process of the Yuan internationalization has both positive and negative effects. To conclude the topic the author presents possible scenarios for the reform of the world monetary system (WMS).

Keywords

• reserve currency
• the yuan
• the internationalization of the national currency
• the financial market