US Dollar Death By a Thousand Cuts Continues

The dollar’s days as the global reserve currency are numbered as the Peterson Institute for International Economics reports in its latest research that China has moved much closer to its long-term goal to make the renminbi the global reserve currency.

Asian economies turn to yuan

A “renminbi bloc” has been formed in East Asia, as nations in the region abandon the US dollar and peg their currency to the Chinese yuan — a major signal of China’s successful bid to internationalize its currency, a research report has said.

The Peterson Institute for International Economics, or PIIE, said in its latest research that China has moved closer to its long-term goal for the renminbi to become a global reserve currency.

Since the global financial crisis, the report said, more and more nations, especially emerging economies, see the yuan as the main reference currency when setting their exchange rate.

And now seven out of 10 economies in the region — including South Korea, Indonesia, Malaysia, Singapore and Thailand — track the renminbi more closely than they do the US dollar. Only three economies in the group — Hong Kong, Vietnam, and Mongolia — still have currencies following the dollar more closely than the renminbi, said the report, posted on the institute’s website.

The South Korean won, for example, has appreciated in sync with the renminbi against the dollar since mid-2010.

China has long vowed to raise its currency’s global sway, along with the rise of its economy, which became the world’s second-biggest last year.

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Comments

  1. China’s susseful bid brings new hope to the NEW world.

  2. “…seven out of 10 economies in the region — including South Korea, Indonesia, Malaysia, Singapore and Thailand — track the renminbi more closely than they do the US dollar.”

    Interesting.  If you read the actual report put out by PIIE (it’s surprisingly free to download), the other two countries on the list are Taiwan and the Philippines.  However, since this is a Chinese paper article, and China considers Taiwan a part of China, they did not mention Taiwan in the list.
     
    There is an interesting article published at the DRSchoon website titled:
    “2012: THE TIPPING POINT — THE RESULTS ARE IN: THE BANKERS LOST”

  3. Tick tick tick tick, clock is counting down for the dollar to be worth zero.

  4. The US dollar will collapse soon because it is losing values, the Federal Reserve keeps printing dollars out of nothing and more countries are getting rid of this currency to accept the Renminbi. Maybe that’s karma’s move to the USA for destroying the USSR.

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