Prepare the currency. The RMB is the most favored.

Prepare the currency. The RMB is the most favored. On a stack of 100 yuan RMB, there are 100 US dollar bills. After the U.S. credit rating was downgraded by Staples for the first time,...

Preparing Currency The RMB is the most promising. On a stack of RMB 100, there are US$100 bills pressed down. After the U.S. credit rating was downgraded for the first time by S&P, China denounced the U.S. debt addiction as a threat to the world economy and questioned the dollar's continued status as the world's reserve currency. (European News Agency) slideshow The U.S. debt credit rating has been downgraded, and the U.S. dollar’s ​​super status as an international reserve currency has been further shaken. The international community, which has been looking for another reserve currency, once again has high hopes for the renminbi. However, there are still experts who have doubts about China’s ability to save the global economy. London's "Financial Times" pointed out that in fact, the credit rating of the United States had already been downgraded in the minds of many countries before the credit rating agencies announced it. The status of the US dollar has also been affected. This is all due to the weak economy. The US gross domestic product (GDP) grew only 0.8% in the first half of the year. According to a survey by JP Morgan, the growth rate of consumer personal spending in the second quarter was almost the lowest in the non-recession period. The global economy needs another preparedness currency, the problem is that there is no reliable alternative yet. The euro has recently lost ground due to economic turmoil among euro zone member states. Although the Japanese yen is in relatively better shape thanks to the Bank of Japan's more conservative approach than the United States and Europe, and its price continues to rise, it is not yet a problem. The Swiss franc is highly risk-averse, but it is easily affected by the European environment and is subject to the Swiss National Bank's punitive measures to prevent the purchase of Swiss francs. It is becoming increasingly clear that the yuan is the most favored reserve currency after China lifts its capital account restrictions, and this will happen sooner than most people think. HSBC's new chief executive Gulliver believes it will take five to ten years for the yuan to achieve this status, but this assessment appears too conservative compared with the views of many economists in Hong Kong. At a briefing recently, Gulliver expressed his love and hate for the US dollar, saying that he knew that the US dollar would continue to weaken, but it was irreplaceable and there was really no alternative currency. Having said that, the United States must use this opportunity to allocate its capital wisely, because sooner or later, the rest of the world will find better investment options elsewhere than today. Jaxon, an economist at Royal Bank of Canada in Hong Kong, believes that during the last recession in the United States, China launched a large-scale economic stimulus plan of US$622 billion, which not only grew its own economy but also stabilized the global economy in real time. But inflation, real estate bubbles and growing debt will affect China's ability to once again save the global economy.