In all the excitement over de-dollarization, some basics tend to get overlooked.
1. The yuan remains pegged to the US dollar, so it remains a proxy for the USD.
It will only become a true reserve currency when China lets the yuan float freely on the global FX market and yuan-denominated bonds also float freely on global bond markets. In other words, a currency can only be a reserve currency rather than a proxy if the price and risk of the currency is discovered by global markets, not centralized monetary/state authorities.
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