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Why Kenneth Rogoff Thinks China’s Yuan Will Be a Reserve Currency ‘in the Next 5 Years’

Harvard economist Kenneth Rogoff predicts China’s yuan will join the ranks of global reserve currencies within five years. He argues that the U.S. dollar faces a legitimacy crisis due to mounting debt, political fragmentation, and waning confidence among central banks. Rogoff points to China’s expanding trade network, its push for yuan‑denominated bonds, and ongoing reforms of capital controls as catalysts. He maintains that digital currencies cannot replace sovereign money, but the yuan’s gradual internationalization is inevitable.