The Importance of a Reserve Currency for China

To become a reserve currency for the rest of the world China would have to give up control of its capital account allowing foreigners unrestricted entry or exit into Chinese financial markets as their needs dictate. With an open capital account the inflows and outflows would be driven by foreign rather than domestic considerations. Most countries specifically avoid providing their currency as a reserve currency they don't seem to want any of this exorbitant privilege. The United States does not necessarily benefit on any ground scale from the current situation.