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RBS says CNY has the potential to become global reserve currency

March 18, 2011 Comments off

finchannel.com

The FINANCIAL — The Royal Bank of Scotland Plc (RBS) believes Chinese Renminbi (CNY) can potentially become a world reserve currency comparable to the USD.

This is one of the findings in the newly released research report ‘CNH Market Guide: A precursor to internationalisation of the Chinese Renminbi’, the most comprehensive research yet to look at the offshore CNY market in Hong Kong, also known as the CNH market.

The combination of growth in the offshore CNY market and the sheer size of the Chinese economy will support the Chinese government’s ambition to internationalise its currency, according to RBS.

“China now holds 30% of the world’s USD9trn foreign reserves. The other 70% which does not belong to the People’s Republic of China (PBOC) could potentially be held in CNY. As China’s share Read more…

Central Banks Dump Treasuries As Dollar’s Reserve Currency Status Fades

March 16, 2011 Comments off

forbes.com

By AGUSTINO FONTEVECCHIA
Official inflows vs total reserve accumulation – Nomura

Demand for US assets, especially Treasuries, has been waning since the beginning of 2011, with central banks around the world increasing reserve accumulation while dumping the greenback.  More signs that the dollar is dead as the world’s only reserve currency?

Nomura’s FX research and strategy team analyzed the latest numbers from the Treasury’s International Capital System.  “It looks like the trend of weak central bank demand for USD assets is persisting into 2011 (after a very weak Q4),” wrote Nomura’s global head of G10 FX strategy, Jens Nordvig in an email.  From November to January, central banks reduced their US dollar holdings by $9 billion; “given a fairly strong trend in global reserve accumulation Read more…

Utah Legislature backs gold as legal tender

March 12, 2011 Comments off

sltrib.com

The Senate gave final approval Thursday to a bill taking the first step to recognize gold and silver as legal tender in the state.

It voted 16-7 to pass HB317, and sent it to Gov. Gary Herbert for his signature.

The measure would recognize as legal tender gold and silver coins issued by the federal government — not just their face value, but also their value in gold and silver or to a collector.

It would not require anyone to accept them, however, but make it an option. It also would exempt sales of such coins from capital gains tax. It also would order the state to study whether Utah should establish an alternative form of legal tender, such as one backed by silver and gold.

“It will put some pressure on the federal government. That’s the goal here because Read more…

Dollar dies, States rebel and FLEE to gold and silver standard !!!

March 8, 2011 Comments off

Dollar Declines to Lowest Since November on Wagers Fed Will Lag Behind ECB

March 1, 2011 Comments off

www.bloomberg.com

By Allison Bennett – Mon Feb 28 22:03:30 GMT 2011

The dollar fell to its lowest level since November against the currencies of six U.S. trade partners on bets the European Central Bank will be more aggressive than the Federal Reserve about controlling inflation.

The euro rose against the dollar on speculation ECB President Jean-Claude Trichet may indicate this week a readiness to increase borrowing costs while Fed Chairman Ben S. Bernanke may signal economic stimulus will continue. Sweden’s krona climbed to a 30-month high after Riksbank Governor Stefan Ingves said interest rates may be raised at every meeting this year.

“The big driver for the euro has been short-term interest- rate differentials, which had moved against the dollar,” said Paresh Upadhyaya, head of Americas G-10 currency strategy at Bank of America Corp. in New York. “Since the beginning of the year it’s been pretty much a one-way trend.”

IntercontinentalExchange Inc.’s Dollar Index, which tracks the greenback against six currencies, decreased as much as 0.7 percent to 76.756, the lowest level since Nov. 9, before trading at 76.893 at 5 p.m. in New York, down 0.5 percent. The gauge, which is weighted 57.6 percent on euro movements, fell 1.1 percent in February. Read more…

IMF says weaker dollar would help global growth

February 24, 2011 Comments off
The International Monetary Fund called for a weaker dollar to help the United States reduce its deficits with the rest of the world and rebalance the global economy, in a report released Wednesday. 

The International Monetary Fund called for a weaker dollar to help the United States reduce its deficits with the rest of the world and rebalance the global economy, in a report released Wednesday.

AFP – The International Monetary Fund called for a weaker dollar to help the United States reduce its deficits with the rest of the world and rebalance the global economy, in a report released Wednesday.

In the report prepared for a Group of 20 finance chiefs meeting last week, the IMF said that its calculations showed the dollar remains “on the strong side” of medium-term fundamentals, while the euro and the Japanese yen were “broadly in line” and several Asian currencies, including China, were undervalued.

To address global imbalances, the G20 should allow the dollar to Read more…

IMF Calls for Dollar Alternative

February 11, 2011 1 comment

The IMF is trying to move the world away from the U.S. dollar and towards a global currency once again.  In a new report entitled “Enhancing International Monetary Stability—A Role for the SDR“, the IMF details the “problems” with having the U.S. dollar as the reserve currency of the globe and the IMF discusses the potential for a larger role for SDRs (Special Drawing Rights).  But the IMF certainly does not view SDRs as the “final solution” to global currency problems.  Rather, the IMF considers SDRs to be a transitional phase between what we have now and a new world currency.  In this newly published report, the IMF makes this point very clearly: “In the even longer run, if there were political willingness to do so, these securities could constitute an embryo of global currency.”  Yes, you read that correctly.  The SDR is supposed to be “an embryo” from which a global currency will one day develop.  So what about the U.S. dollar and other national currencies?  Well, they would just end up fading away.

CNN clearly understands what the IMF is trying to accomplish with this new report.  The following is how CNN’s recent story about the new IMF report begins….

“The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world’s reserve currency.”

That is exactly what the IMF intends to do.

They intend to have SDRs replace the U.S. dollar as the world reserve currency.

So exactly what are SDRs?

Well, “SDR” is short for Special Drawing Rights.  It is a synthetic currency unit that is made up of Read more…

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