The fundamental reason China will struggle to dethrone the dollar
A BRICS currency challenging the dollar is a fantasy, but for its part China has self-inflicted problems that will hamper the renminbi’s attempts to take over the US currency’s role on a large scale.
The recent BRICS summit is disappearing in the rearview mirror and with it, mercifully, some of the wildly unrealistic discussion of a new currency issued by the grouping’s five emerging market members – aimed at dethroning the dollar.
Policymakers watching challenges to the greenback’s global dominance can return to the more realistic challenge from an existing currency, the Chinese renminbi.
