A team of experts from the International Monetary Fund is visiting China this week to help determine whether the yuan, also known as the renminbi, should be designated an official reserve currency.
"On Monday and Tuesday, the IMF team was scheduled to hold technical discussions in Shanghai with officials at the Chinese central bank and China Foreign Exchange Trading System, which oversees currency trading in China," The Wall Street Journal reported.
China still has work to do to achieve this goal, but it is on the way to and is making promises about the changes that are coming in order to qualify for reserve currency status. A final decision is expected to be made by the end of the year.
There are still reforms to be completed, but Eswar Prasad has written in the Financial Times that the Chinese are exerting the necessary leverage to get reluctant officials on board.
Prasad also argues that "the renminbi's rise could be a constructive force for change in China and the international monetary system." Such a move, Prasad contends, will further open up markets and make exchange more flexible and responsive.
But where is the U.S. in all this? Falling behind, it seems.