There are nearly as many currencies in use around the world as there are countries, but only a handful of currencies are widely used outside of their home economies. While China has found some initial success at internationalizing the renminbi, it faces an uphill battle in shaking up the global currency hierarchy.
Keyword:foreign exchange reserves
Is it a Risk for America that China Holds So Much U.S. Debt?
Many worry that China’s ownership of American debt affords the Chinese economic leverage over the United States. This apprehension stems from a misunderstanding of sovereign debt and of how states derive power from their economic relations.