Not really chengbhai, over the next 5 to 10 years we will reach a tipping point when the reserve currency will fall, its then we have to worry. everytime the batton is switched between empires there is a war. Last time brits got away cos of german war, its at that time we have to worry and this american regime has to decide whether to accept the new order gracefully or nuke the world and kill everyone
I have been hearing this crap for too long from idiots whom western governments allowed inside their country due to either momentary lapse of judgement or and massive intelligence failure(in which case someone should be sacked).
People talking about reserve currency have no idea what a reserve currency means or their knowledge is limited to wikipedia.
The salient features of reserve currency could be summed up as
1.The currency is fully convertible(Both Capital account and current account)
If a currency is not convertible,it's value can't be determined by the market and the holder of that currency cannot be sure it's value.Also value of a non convertible currency can be changed at whims of issuing countries which can be detrimental to holder's interest.A convertible currency's value can be manipulated by printing more money which leads to inflation and acts as natural stabiliser.
Yuan non convertibility is its biggest drawback which is an impediment to it's becoming a reserve currency.If chinese government makes Yuan convertible,it would appreciate wrt Dollar and Chinese Export would become costly ruining their industries.
2.The currency is traded in international markets at volume large enough so that there is no volatility.
Scale of International trade is truly gargantuan.There is massive need for a liquid currency to settle payments.Swiss franc,SDR,and Gold has all the required characteristics except that their market is not deep enough to absorb volume of trade.
3.The currency should be acceptable to commodity sellers like oil merchants.
Except Iran Everybody is accepting Dollars.
4.The derivative market for the currency is developed enough to provide enough insurance against fluctuation.
For yuan it does not exist and Gold is too volatile to allow any meaningful development(Premium quoted very high)
5.The currency should be backed by sovereign guarantees.
Even you could issue a currency provided that anyone would accept it
.The piece if paper your grocer gives you when he is out of change or the loyalty point your supermarket provide you are also a currency.But they can't be held in reserve as they are not tradable.
6.IF the Reserves are held in form of bonds then there should be no chance of default on part of issuer.
If bonds are held in the issuer's currency there is no chance of default.
US issue its Bonds in dollar so if china liquidates it's holding US could simply print dollars to pay to china.
Greece issue it's Bonds in Euro which it can't print hence it is on the verge of default.(Though it is a very long story in itself).
7.The bonds should at least give some return so that value of reserve does not depreciate.
As far as i know except inflation proof bonds which are very costly,Bond of nearly every Reserve currency depreciates.