India had better consider its own future in this regard, too. If India is the last one to jump ship, it could end up being soaked.
Tuesday, May 26, 2009
China Moving to Replace Dollar with Yuan?
Businessweek says that there's mounting evidence that this is about to happen. The Chinese are more than just thumbing their nose at the US. They're showing that they have no confidence in the USA's carefree spending ways, and thus are moving to protect their own future in bypassing the US currency.
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With Manmohan at the helm, this is now a certainty.
>>>If India is the last one to jump ship, it could end up being soaked.
From the same article: "If the Chinese were to bring the yuan into competition with the dollar as a medium of international trade, they would have to turn the yuan into a convertible currency whose value would be dictated by the market, with traders, investors, governments, and companies around the world freely buying and selling it. Such a loss of control, said many Western investors, would never be allowed by the authoritarian Chinese. It would mean lowering all kinds of financial trade barriers, allowing foreign access to Chinese securities markets and more. No way."
Well, the dominance of the USD will at least end. Things could end up as a mixed basket of currencies, with various currencies swinging back and forth, in and out of dominance.
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