The Yuan as the new World Currency
China is sticking its toe into making the Yuan more of a freely traded world currency. They are hesitant, because the more the Yuan is being traded and used as an exchange currency, the less control they may have over the value.
A quote from www.ibtimes.com on their immediate plans for globalizing the Yuan:
“Chinese currency should become a major means of trade settlement before it rises to a major currency in the world, and the nation is now working in that direction via the pilot project,” Zhijie Ding , vice dean of finance at the University of International Business and Economics, told China Business Weekly. Given China’s determination to reduce its reliance on the dollar, Ding said the Chinese yuan could go global in the next two to three years.”
What does this mean for the dollar? That is the concern here in the US. The dollar has been China’s “gold reserve” for years - and without them to prop us up….what happens to our currency value - and therefore our trade and financial clout?
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