Linking the value of China’s currency to the dollar has had benefits, but in the last year has also come at a big cost: It has resulted in the renminbi’s rise against competitors and trading partners when the economic fundamentals of China would argue for it to fall.
China is looking to assert more of a leadership role in the global economy, and an important piece of that is establishing the renminbi as a reserve currency. The dollar and the euro have a reach and a usefulness far beyond the borders of the countries that use them, and China would like the renminbi to have a similar sway in global trade and finance, especially in Asia.