Skip to comments.A Global Currency is Born
Posted on 04/27/2013 7:43:58 AM PDT by ExSoldier
The worlds second-largest economy has a currency that ranks 14th most used in the world, just ahead of the Danish krone, behind the Russian rouble and miles away from the euro and US dollar, No. 1 and No. 2, respectively.
But that is quickly changing. The internationalization of the RMB, as engineered by the Chinese government, is happening at warp speed. At the start of 2012, the RMB ranked 20th among international currencies, according to SWIFT (Society for Worldwide Interbank Financial Telecommunication). It leaped six spots in nine months.
At some point in the next decade to come, the RMB will be a major player among global currencies, said Chris Davies, Deputy CEO of HSBC China. This is very much a step-by-step process, a technical process, as the currency moves from being ring-fenced to one more convertible globally.
(Excerpt) Read more at businesswithoutborders.com ...
Ironically, I've said for years that the Chinese yuan was a worthless currency as long as it was pegged to the dollar. That may now be changing.
Something else to consider here is that China really couldn't continue with their policy of linking the yuan to the dollar. With the currencies linked, the price of imported commodities (into China) jumped through the roof as the U.S. dollar lost its value. Do you think the Chinese were happy trading partners with the U.S. when oil was trading at $140/barrel?
I think this is a reaction to other countries being fed out with the continual printing of the West (US, EU, UK, and Japan). Anyone outside of these countries holding these currencies is taking it in the shorts. As are savers IN these countries.
In a way, this is a GOOD thing, as it will force our Government to deal with entitlements when they can no longer print an infinite amount of $$ without consequences..
China is Big!
(Therefore, their currency will now get some use internationally.)
The original dusters in Australia were made from sail canvas. I have a horse and two dusters. One duster is the classical and the other has team logo on it from my mounted shooting days. They are both in the attic. Now when I trail ride I wear an ECWS coat.
We have a very long way to go ~ hundreds of trillions of dollars ~ and may be even thousands of trillions, or millions of trillions!
Actually the largest number of conversions to christianity in the world is taking place in China.
I should apologize and clarify here ... My comment wasn't directed so much at your response as it was at the general tone of alarm on various threads around FreeRepublic that's been presented regarding China's currency issues.