Wedding Parties-a social practice whereby people flaunt their fashionable existence. People of all sizes make it known to others that perception precedes the person within. Lately, yours truly has attended few parties and dress rehearsals and has been petrified by the complete changeover of people from their modern lifestyles. Although, some parties have boringness written all over it, due to the dearth of good conversations, yesterday’s party was an interesting one. Amidst the fashion which was very much in existence, our group of friends conversed on a topic on the effects of the Yuan as the world currency. The following are some excerpts from the group conversation.

The US Dollar will bear no risk from China’s efforts to encourage other emerging market economies to use the Yuan more in international trade. China is slowly but surely dismantling a comprehensive set of very, very tight controls on the ability of countries to use the Chinese currency. As time passes by, this will mean a good thing for the USA as more use of that currency will mean the currency will have to reflect the market forces at work-which will take the sting out of the operation.

China is planning to extend renminbi-denominated loans to its fellow BRICS countries-a grouping that includes China, Russia, South Africa, Brazil and India-in an attempt to boost trade between the leading emerging market nations and promote the use of the Yuan. However, China’s transition from an economy fueled by exports to one driven more by domestic demand is partly why the value of China’s currency is moving up against the dollar.

The Yuan has been driving itself to become the world currency replacing the dollar on the way. But for this to happen, the Chinese government will need to open its economy further in terms of trade with the outside world. The Chinese government is taking stances against its stringent policies and widening the reach of its products. Yet, replacing the US Dollar is not an easy task at hand and requires perpetual efforts.

The conversation ended with a popular notion-The Chinese Yuan can replace the US Dollar as the global currency but needs to enhance its activities in order for the inevitable to take place. Well, having stated the above insights, I am signing off for the weekend.

Have a great weekend everyone!