HONG KONG (EN) — China’s yuan is poised to overtake the dollar as the world’s reserve currency in the coming years, according to new research from Barclays Capital.
The research shows the yuan, a Chinese currency pegged to the greenback, is now poised to take on the reputation of its US counterpart, the dollar, in international trade.
The yuan is set to overtake both the euro and the yen by 2020, according the Barclays Global Emerging Markets Index, which tracks the performance of currencies across the globe.
The index shows the greenbacks currency to have surpassed the euro by the end of 2021, overtaking the Japanese yen, as the global reserve currency.
The study, based on data from China’s Central Bank, also showed the yuan is now the most popular foreign currency among international investors.
Barclays Capital forecasts that China’s economic growth will surpass the US economy in 2020, surpassing 3 percent.
The report also said that by 2022, China’s economy will surpass China’s own GDP.
Barcelona said the yuan will soon surpass the dollar and become a more widely accepted currency in global trade, which is important given the US has been at the forefront of the fight to curb currency manipulation and speculation.