How Chinese Savers Are About To Change The World With $21 Trillion?

A seismic change is about to take place in the world in the next 15-20 years when China opens it’s capital borders. With China’s leadership aiming to scale back the role of investment in the domestic economy, the nation’s surfeit of savings — deposits currently stand at $21 trillion — will increasingly need to be deployed overseas. That’s also becoming easier, as Premier Li Keqiang relaxes capital-flow regulations.

During the next 15-20 years, China is expected to transform itself from the world’s biggest capital importer to the biggest capital exporter. China is attempting to make Yuan a global reserve currency just like the US Dollar. You can well imagine when China succeeds in making Yuan a global reserve currency, how much clout it will give the Chinese in the global financial system. China’s goal to attain endorsement of the yuan as a reserve currency will be achieved this year, according to most economists surveyed by Bloomberg.