Robert M. La Follette School of Public Affairs

A Note on Reserve Currencies with Special Reference to the G-20 Countries

China's renminbi is likely to gain status as a reserve currency, but initially just on a regional basis. A multi-reserve currency world is unlikely to harm global financial stability. However, achieving the prerequisites for reserve currency status will force sacrifices of policy autonomy. In addition, reserve currency status might reduce international competitiveness for individual countries, as higher demand appreciates their currencies.

Additional Info

  • Volume or issue no.: La Follette School Working Paper No. 2012-012
  • Author(s): Menzie D. Chinn