CNBC Pro

Chinese yuan will become a top reserve currency sooner than expected, says Ray Dalio

Share
VIDEO1:4801:48
Ray Dalio on whether the Chinese yuan could become a global reserve currency

The Chinese yuan will become a global reserve currency sooner than most people expect, said billionaire investor Ray Dalio.

The U.S. dollar is currently the world's reserve currency, but billionaire hedge fund manager Dalio said the yuan's role could grow much bigger in the next few years.

Dalio, founder of the world's largest hedge fund Bridgewater Associates, said more global trade and financial transactions could be denominated in the yuan in the coming years. That's going to help China's currency become more widely used internationally, he told CNBC Managing Asia's Christine Tan.  

Here's the investor's take on why the yuan is going to become more attractive, and how its digital form could be a very viable investment alternative.

More In Pro Insight

CNBC ProThe most widely followed Wall Street investor survey shows big leap in economic fears
watch now
VIDEO03:40
CNBC ProEquities still have further upside despite cost pressures, strategist says
watch now
VIDEO13:04
CNBC ProP&G's Jon Moeller reacts to Q3 earnings, supply chain issues, inflation and more