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June 18, 2025

RMB Internationalization and Inclusion in SDR. Implications For US Treasuries.

RMB Internationalization and Inclusion in SDR. Implications For US Treasuries.

by Burnham Banks / Tuesday, 09 June 2015 | 6:26 am / Published in Articles
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There is some concern that with the internationalization of the RMB and its eventual inclusion in the SDR, that China’s demand for USD and US treasuries will fall. There may be other reasons why China’s demand for USD and US treasuries may fall but the SDR inclusion and RMB internationalization is not a primary concern. China’s decision to hold USD and US treasuries is not determined by the RMBs reserve status. As far as China is concerned, the RMB has reserve status since this is China’s own sovereign currency.

A tighter trade surplus may result in lower demand for treasuries.

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“Hello. I’m Burnham Banks and I studied economics in the late 80s and early 90s. I’m still studying economics today and am still no wiser. This blog is a journal, a record of my thoughts and experiences. If we are destined to repeat our mistakes, we should at least repeat them faithfully. If not, then perhaps the past is a mischievous guide and we should try something new.”

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