No. The US dollar will remain the world's reserve currency and will likely be adopted even more since the Euro is screwed. The RMB is worthless and will remain worthless until China lets it appreciate much more in world markets which isn't going to happen because that will slow exports. The dollar is here to stay for the foreseeable future.

If i look at the exchange rates i dont see that the RMB is worthless but sure see a huge decline in USD..... i have quite some USD and i wonder should i change it as i am loosing money each day...
comparing to the RMB, in the past 2 months i have lost at least 700 USD

No, first off no government trusts the Chinese government (they're amongst the most corrupt) second China itself has strict controls over trading of the RMB, I think the Canadian dollar or Australian would make much better candidates over the RMB

Do whatever you feel like you need to do. The RMB is worthless and the PRC keeps it that way so that foreign companies can't afford not to do business in China. Go ahead and convert your money if you want but you're likely to lose much more than $700.

I should also add Fritze the the Chinese government itself hasn't sold off any of their U.S. currency reserve, business tip: Buy low sell high... So if you sold now you would indeed take a hit and I promise to point it out to you once the greenback climbs again (oh and it will... Even the Chinese government thinks it will!)

fritze is an american hater and really dosnt know anything about biz or the world economy and actually i really think this guy is an aciident looking for a place to happen

Maybe not the world, but for sure in Asia, someday in the not to distant future.

@ Fritze, dump the US green backs, ASAP... they will continue to decline against the mighty RMB

Guys... i wasn't arrogant, i was hoping for advice or at lest what you think. i thank once again Njord for his input. the other guys.....this was a monetary question not how much or how little i hate America....
Bat22 is more fortunate than me as he found a accident this morning when he saw what is in the mirror. I never said i know the world economy (sure you don't). Each time BAt22 opens his trap he insult people .. its reflects his upbringing (USA, Uganda???)

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On the serous note i asked this question hoping someone knows the market REALLY and could give advice

fritze china is an export economy the only reason china has grown in the last few years is because it is cheaper to do business here. if the chinese rmb reaches close to 1:1 with the us dollar then it will become too expensive to do business here and companies will go else where collapsing the chinese economy
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also chinese believes in counterfeiting money at least other countries
every country knows this so they will never trust the rmb

crimochina, i agree i don't think the RMB can replace the USD... I just thought as in the news there is lots of speculation in changing it and i think also that the Canadian dollar or Australian is a better bet.
I just dont know what should i do with the USD i currently have as i wont be traveling out of China for the next 14-18 months.

If Switzerland wasn't such a small country, I would hope the Swiss franc to replace the dollar :)

If anyone knew 100% of what will happen to each currency they would make a fortune. Not one expert that I know of predicted the Australian $$$ that was at around 60cents to the US not so long ago would get up to $1.10 so it is all speculation. What is known for certain though is that the Chinese RMB is kept artificially low by the government and they have reasons for this that others have explained. What is also known is that the US and many other countries including my own Australia are trying to put some pressure on China to get the RMB higher. When or if this ever happens who again knows. But because there is no free market forces on the RMB then it will never become the currency of choice.

I've heard a theory that some day in the not so distant future, all world currencies will be replaced by currencies from major companies such as nestle, apple etc. Many companies have more money that entire countries (including the US) and may eventually become more powerful than governments. When that happens, we'll be citizens of Nestle Kingdom and trading in Nestle dollars.

sweety they alresdy influence govt, usa invaded iraq to get oil companies those contracts. usa killed off the democratic leader of iran many years ago because he nationalized the oil in that country. sadly the people of iran are still suffering from that

(you see chinese it is ok to admit to the negative aspects of your country)

it is not impossible , strong economy of china is the evidence of that and secondly US economy in now towards decline as US is now under the loans of China including europe and the money is going now to south east asian region.

there is not too much manufacturing now in developed world as the labor cost is too much high and there are lot of other reasons as well.............

Well my best wishes to China, Long live China.

jahanzeeb... i wonder why the other people cant see what you and i see?? I don't wish bad on any country but we need to look at the real picture as it unfolds.

The Chinese Yuan will never replace the US Dollar as the world currency...at least not anytime soon. Yes, China's economy is growing extremely fast, and has the potential to be the world's biggest economy in the near future. But that doesn't mean that the RMB will take over the USD. The Dollar still is strong in most markets and is one of the main currencies for doing business. China would have to become self-sustainable and not so reliant on foreign investment and trade before the Yuan would even think of being as strong as the Dollar.

Even the USA rely on foreign investment, trade and tourism.

Wow, please stop with the made up stuff!

Fritze, hold on, I will give you a real answer, but first:

"secondly US economy in now towards decline as US is now under the loans of China including europe and the money is going now to south east asian region."

Loans of China? Please read up on this. China owns a lot of US treasury bonds (ie "debt"), and they are the largest FOREIGN debt holder. 85% of US debt is held by.... Americans. China "owns" about 9.8% of the US debt. Yes, it's a ton of money, but considering that the US, even with it's economic problems, still makes 3 times as much money as China does. China doesn't "own" the US, nor is the US in anyway bound to China's whims and demands.

That said, back to Fritze:

Ok, for now, the US dollar will remain the reserve currency simply because so many people are invested in it. China, Japan, and a ton of other countries in Europe (and Canada) would all have to dump their holdings around the same time (lowering the value of the dollar against foreign currencies and also lowering the value further by removing the foreign debt investment). This would then cause a panic on Wall Street and collapse the US economy, which no one really wants (collapsing an economy is bad for EVERYWHERE...Just look what happened in Europe with Greece and Spain...)

Ok, that said, as for replacing the US dollar with the RMB as a reserve currency, I suppose it COULD happen, but it so far away it's unlikely. China would A.) Have to float the RMB on world markets (which they have so far refused to do, because it will almost halt China's economic growth - a floated RMB would be 4:1 or 3:1 to the USD currently) and B.) China would need to refocus it's profitability away from basic manufacturing. Sorry, but an economy based on making the world's cheap stuff doesn't inspire confidence in the IMF.

So if China can keep growing and switch the economy over to higher sector goods, maybe create some international brands, export knowledge bases, multi-international firms, etc, sure... Someday the RMB might be a reserve currency.

As for where to put it, I would keep it. All traded currencies are valued against each other, so transferring it to another currency really won't help unless you are actually trading currencies in the market.

Keep in mind that the US controls the US dollar. Right now, it's advantageous for the US dollar to decline in value (it increases US exports) and the Treasury department controls this by selling Treasury bonds (debt) and right now they are selling more to keep the dollar low. When exports reach a certain level, the dollar will climb again. And trust me, it will when it's the best case scenario for it to do so.

here's another clue as to the value of rmb going down in the near future (year or 2) the value of the rmb is the highest it has ever been but the price of goods continues to go up.
i believe markets are manipulated by the wealthy, and right now someone is slowing selling their rmb for us dollars because they know that the rmb will fall again, china is an export based economy. different from foreign trade and investment. they manufacture it here to sell to the world

MrTibbles.. thank you this is such a good answer even a person such as i do understand it now.
Thank you