JPMorgan boss: There is serious competition for the reserve currency dollar

usd vs yuanThe US dollar is the global reserve currency. But in a few years another currency could become a serious competitor.

In 20 to 30 years, the yuan will be comparable to the US dollar , said JPMorgan CEO Jamie Dimon to “Bloomberg”. Previously, China has yet to tackle a long list of financial reforms, after all, no comparison is possible as long as the Chinese currency is not freely exchangeable.
Still a long way

On 1 October 2016, the International Monetary Fund (IMF) added the Chinese renminbi (yuan) as the fifth currency – alongside the euro , US dollar, pound and yen – to the world reserve currencies. This decision reflects the importance of China, after all, the world’s second largest economy, and represents a huge gain in prestige.

In addition, the MSCI Index Review on June 1, 2018, may include Chinese A shares in the global MSCI indices. This decision is particularly important because many fund managers are guided by MSCI.

But according to Dimon, these are only small advances. Because China will need a freely convertible currency, so that foreign investors can fully enter the Chinese stock market. Until then, it is still a long way, so the JPMorgan boss.

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