It looks like the Chinese Yuan is going to be included in the Special Drawing Rights (SDR) basket of currencies of the IMF. This means a country will now be able to borrow Yuan from the IMF if they wish to instead of borrowing British pounds, Japanese Yen, US dollar, or Euro. A further meeting will be held on November 30 2015 to assess whether it meets all the criteria to be included in the basket. It really is inevitable that it will be included.
Now with the US in loads of debt and again raising the debt ceiling and the UK already bending over backwards for China it’s just a matter of time before the Yuan becomes the reserve currency of the world. A reserve currency needs something to back it. A currency can’t rely on the paper it’s printed on to back it. The US dollar is backed by oil (petro dollar) although now it seems to be backed by credit which is unsustainable hence the reason the US dollar will fade away. And here.
So will the Chinese Yuan be backed by something other than oil or credit? If it is backed by GOLD then a revaluation of the gold price will be at hand.