The China Price
In 1971, as the international monetary system was on the brink of collapse, U.S. Treasury Secretary John Connally told a group of worried European finance ministers that the dollar was “our currency, but your problem.” The dollar had become that system’s official reserve currency in 1944, under the
Source: Foreign Affairs
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DW NOTE
Beijing isn't going to end dollar dominance by issuing green bonds. It lacks the capital market depth, the legal certainty, and most critically, the willingness to run sustained current account deficits — which is what reserve currency status demands. China runs a $900 billion annual surplus. You cannot be the world's banker and the world's factory at the same time.