As the effect of the subprime mortgage crisis hasn't been eliminated completely, the world's economy relies more and more on the growth of the Asian economies, especially the leading Chinese economy and its currency. It won't be a surprise that Chinese Yuan would start its globalization process, as indicated by the bond issuance this August in Hong Kong. It will be an important issue to discuss whether the Chinese Yuan has its ability and capacity to be one of the world's main reserve currency, or even the world's leading currency. This essay will firstly discuss the development of the Chinese Yuan worldwide in the past few years, which would explain the temptation behind for the Chinese Yuan to be the world leading currency. Following this, further analysis would be implemented to demonstrate why it is not practical to replace the US Dollar to be the world's leading currency in the short-term. Finally, opportunities will be thoroughly analyzed to demonstrate the current situation that Beijing is facing. A dilemma would be disclosed, as the Chinese Yuan is facing its temptations, challenges and opportunities on the way to be the world's leading currency.
From Chinese Yuan to World's currency: the temptation implicated in globalization
The first step of the Chinese Yuan's globalization has been made eventually, under the enormous temptation to go to the world. It is common for the China's Ministryof Finance to issue bonds in the mainland, but not common in Hong Kong, especially in its own currency, the Chinese Yuan. This event has been much notable for its size, which is nearly 20 billion Yuan. As another important remarkable event for Chinese Yuan, a notification was issued by the State Department of Commerce at October 15, which clearly marks that the Foreign Direct Investment in Chinese Yuan has been approved by the authorities. These two remarkable events have declared the globalization of the Chinese Yuan has been officially started. Hong Kong, the former colony of the British, has been assigned to be the first location to promote this ambitious program(Lingling Wei, 2011). After the Beijing Olympic Games, people worldwide have been some kind familiar with the Chinese people, as well as its currency. Now the subprime mortgage crisis hasn't been eliminated completely, the USD has been continuously weakening, so it is a chance to start the globalization of Chinese Yuan at this time. But the most important motivation for the Chinese Yuan to go to the world is the benefit from globalization. The globalization of a currency would ease the inflation pressure within its nation, and furthermore, would take advantage of the natural resources all over the world. That is exactly what the U.S. government has been doing for more than half century.
Challenge the USD: mission impossible in the short term(责任编辑：英语论文代写)