But the Chinese yuan, or renminbi, is unlikely to become a key player in foreign exchange reserves without sweeping structural reforms that Beijing has been hesitant to make, analysts say.Despite lackluster consumer demand and a five-year housing slump, China still is by many measures in an enviable position. It is the world’s second-largest economy by nominal gross domestic product—and the largest in purchasing power parity terms—and it drove 30 percent of global economic growth last year, Chinese officials say.
China also boasts the largest banking system by assets, enabling it to fund large-scale infrastructure projects at home and abroad. It also has the world’s largest stockpile of foreign exchange reserves—a substantial buffer against financial shocks.
