There is no immediate prospect of the Chinese currency, the yuan, overtaking the U.S. dollar to become the world’s most important currency.
Although the yuan has in the past three years overtaken 22 competitors to become the world’s eighth most used currency, overtaking the greenback is not in the cards, said U.S. economist Eswar Prasad.
Prasad, the former head of the International Monetary Fund’s China division and now a researcher at Cornell University and the Brookings Institution, said the rise of the yuan will be held back because of China’s underdeveloped financial institutions and its incomplete political reform.
