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Why the Chinese will not
become the reserve currency

The real reason the Chinese are buying tons of gold

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The real Chinese strategy

The Yuan as a trade currency yes.

The Yuan as a reserve currency, no.

Why? It' simple.

The Yuan market is far too small to absorb the world's savings.

For the Yuan to become a reserve currency it needs huge amounts of sovereign debt, dealers, a settlement system, a futures and options trading system - and the rule of law. China has none of these things - especially the last one - and it's not even close to them.

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