The article “The Future of the Yuan: China’s Struggle to Internationalize Its Currency” by Sebastian Mallaby makes a reliable prognosis on replacing the US Dollar as the world’s currency by Yuan in the near future. The author explains his prognosis’ relevance by the fact that very soon China will become the major economic power in the world. He also makes an excursus to the history to explain why and how such phenomena happen on the example of the British Pound and its fall as the world’s main currency in the end of the World War II.
Mallaby begins his article relating the events of the conference held by the President of China in 2008 while the very climax of the global economic crisis. He discusses the goal set by the President which is in making Yuan the planet’s major currency in the future. Next, the author shifts to the constant difficulties experienced by Dollar. In particular, Dollar lost more than 15 percent of its value if compared to the period of 1970. It also lost its positions as a primary currency in the world’s commodity circulation as China with its currency occupied this niche. However, according to the findings of the article, in the current period of time it is not even clear if China wants to make its Yuan the major currency in the world. Thus, the author makes a conclusion that in the next decade, Dollar is unlikely to lose its position at the global economic market, and Yuan will still continue as a secondary currency in line with Euro, British Pound and Swiss Franc.
Highlighting the main points of this article, it should be stated that they are in representing the future prospects of Yuan and Dollar. In particular, Yuan is on its way to becoming the next major currency in the world; whereas Dollar is sure to lost its dominating position among the world currencies in the near future.
As a final point, the article “The Future of the Yuan: China’s Struggle to Internationalize Its Currency” by Sebastian Mallaby is centered around the theme of replacing the world’s main currency in the near future. The author strives to prove that Yuan will be the next world’s major currency in a relatively short period. Such unfavorable prognosis for the US Dollar, though strange and even unthinkable, is supported by a variety of facts including the ever-growing economic strength of China, the shift in the world’s financial system and the distrust to Dollar which was caused by the global economic crisis of 2008.
Works Cited
Mallaby, Sebastian, and Olin Wethington. “The Future of the Yuan: China’s Struggle to Internationalize Its Currency.” Foreign Affairs, vol. 91, no. 1, Council on Foreign Relations, 2012, pp. 135–46.