Keeping a Reserve Currency in China

China's currency just has a lot of problems that make it unpalatable in the eyes of many institutions. Chinese citizens are not allowed to transfer more than the equivalent of 50 thousand us. Dollars worth of the currency out of china every year. China artificially lowers the value of its currency in foreign exchange markets to make its exports more competitive. This is a tactic that has helped it build the impressive industrial base it has today. But it also means that its currency does not have a truly fair value.