The Rise of the Emerging Market (EM) Currencies ... and the Fall of the USD?

The U.S. Dollar has been a very popular currency to hold worldwide as it has had a reputation for being stable and is accepted in exchange for goods and services in most corners of the globe. However, the world has changed and the dollar no longer has the primary position it once held. Not only is the Euro a competitor, but emerging market currencies [e.g., Mexican Peso (MXN), Brazilian Real (BRL), South Korean Won (KRW), Chinese Yuan Renminbi (CNY), Indian Rupee (INR), etc.] are becoming favored currencies for the international currency market investors.

Some people are arguing that the Chinese Yuan Renminbi (CNY) could take over the U.S. dollar and the Renminbi will become the next reserve currency.

Questions:

To what extent has the Euro affected the popularity of the US dollar as a medium of exchange?

Based on your analysis and findings, will Renminbi replace the U.S. Dollar as the world's most popular currencies to hold? Will Renminbi become the next reserve currency? Why? Explain your reasoning.