New Delhi, Sept. 15 -- If China fancies the chances of its yuan taking on the mighty US dollar, India must keep watch. Right now, it is a no-contest. The yuan accounts for just 4% of international payments, while the dollar notches up about half of them. Only 2% of the forex reserves of central banks are held in yuan assets versus 58% in dollar assets.

Yet, signs of Beijing's long game have begun to emerge. How it fares will test not just its resolve, but whether a fully convertible currency is necessary for global dominance.

Misguided US sanctions after the 2022 outbreak of war in Europe have catalysed Chinese efforts. Despite its economic slowdown, China's trade heft is aiding its push for settlements in its own currency. Over 30% of ...