Given their stability, the rupee and the renminbi (Chinese currency) when made convertible could well emerge as substitute currencies which countries will hold their reserves, stated Raghuram Rajan, Economic Advisor to the Prime Minister and Professor of Finance at the Chicago Graduate School of Business, on Wednesday. Commenting on a single currency for better returns vis-a-vis the US dollar, Rajan said, "My sense is that the next international currency would be the renminbi, when they allow it to be convertible and down the line. I think the rupee will join the basket of international reserve currencies when we allow full convertibility and so on." India, China and Russia have at the G8 Summit suggested that the global economy has for too long been too dependent on the dollar and called for changes in how $6.5 trillion in foreign-exchange reserves are managed. At the G-8 Summit in Italy, China asked for a debate on a coming up with a new global reserve currency. And although this was ignored, the fact remains that with enormous foreign exchange reserves, China India, and Russia do pull a lot of weight in the global economy today. The weakness of the dollar has added to this pressure significantly. http://business.rediff.com/slide-sh...-global-currency-soon-says-raghuram-rajan.htm
not going to happen anytime soon. US leads the world in just about every business, energy, banking, agriculture, research, technology. It is just a matter of the American wages coming down along with the health care costs in the US. A basket of currencies, of which Dollar, Yuan and Ruppee, and Yes are all a part, sure that can happen.
The idea here is that there can be another consuming middle class somewhere on earth, with the associated class of growth, stable interest rate and stable gains in productivity which suits the environment of growing stock markets... Whether thats even possible, at a political level, land/commodity/energy access levels, or levels of education concurrently, remains to be seen, but India seems much more viable in the near term than China.
Not plausible because 85% Indians themselves do not any bank accounts http://in.rediff.com/money/2005/dec/01guest3.htm
No chance for 20 years+ Only when you get democracy in China and full convertibility in RMB will there even be a slight chance of USD being supplanted by RMB... After 10 years as a freely floating currency maybe you can begin to discuss RMB as a 'reserve currency'. Presumably one of the requirements to be a reserve currency is that you can actually use it buy and sell international goods...not just in Hong Kong or North Korea...! How many of those reading this post actually hold any RMB? You might lose 5-10% a year holding USD but at least you know you will always get back the bulk of your money...and frankly there is always some risk of losing everything in China if and when they change the rules after a people's uprising or some other political storm. The EUR had a chance of supplanting USD but that has lessened after the recent problems in the PIGS.. What might change the dynamics for RMB would be if China went crazy stockpiling gold and accumulated more than the 8,000 tonnes of gold reserves held by the US...then they could back their currency with gold and it would gain an immediate advantage over the other paper crap that we call USD, EUR, GBP, etc. You would still need convertibility for a period of time, but it might speed the process.. But currently I think China holds about 1000 tonnes so again this is way, way off.. As for the Indian currency, we are still talking a country where corruption is rife so anyone who thinks the Rupee will be a reserve currency any time soon needs their head examining
democracy my ass, the west has fucked the world with it's preaching of democracy, trying so hard to shove it down other countries' throats only a naive jackass could assume that his vote matters, first do some research on how this whole western democracy shit works, then preach it the USD being a reserve currency has nothing to do with the US being a multi trillion dollar war machine, it's because of so called democracy, right?!, for every 4 dollars printed at least 1 is spent on maintaining it's reserve status, and this whole preaching of democracy is part of it too, 'we didn't fuck up a country because they didn't want to accept dollars, we fucked them up because they didn't want to accept democracy'