China's Yuan Set to Replace U.S. Dollar as Reserve Currency

Leading economist Nouriel Roubini has warned that China's yuan is set to overtake the U.S. dollar as the world's reserve currency, the London Telegraph reported Friday.

Roubini, of New York University's Stern Business School, says that though such a major change is a ways off, the Chinese government is already laying the groundwork for the change.

Roubini, referred to as "Dr. Doom" for his oft-dire positions, says China is better placed to provide a reserve currency in the 21st century than is the U.S., because it has a large current account surplus, focused government and few of the economic worries currently being experienced by Washington.

In a column published in The New York Times, Roubini warned that Beijing has already begun preparing for the change with a proposal for a new international reserve currency via the International Monetary Fund.