China made a move late last night to establish the Yuan as a world reserve currency, you won't find much news yet on it as Reuters only had two paragraphs on it.
Watch any news on this closely, this changes the entire dollar dynamic and apparently China is making it's ambitions known more openly now, "America, you're time is over-it's ours".
How FX markets will respond longer term to such an opaque economy is an unknown, but this should also have some effect on our government's debt as they seek to knock out the legs from under the US. Lets hope they don't start selling T's on the open market-it wouldn't make sense, but China has always been willing to make sacrifices to improve it's standing-just ask the Chinese people.
Any articles anyone sees, please send in.
5 years ago
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