The short report by Reuters yesterday has received little attention. They brigt significant explosives - not less than the beginning of a new world monetary system: the future China will not conduct its foreign trade in U.S. dollars but in yuan. One could also say China is the first step to replace the U.S. dollar as reserve currency in the world.
Even during his state visit to Washington earlier this year blatantly pointed to China's President Hu Jintao that China is ready to take over the economic leadership of the United States. And that might actually succeed. While the Middle Kingdom as compared to U.S. economic power is still more of a dwarf, but the giant U.S. is struck and falls. The debt is huge, a threat of state bankruptcy was moved with a small supplement law just for two weeks because the zerstittenen parties in Congress have been able to agree on a final redevelopment plan.
The dollar is therefore already under fire. So far, the yuan was not a competition. He was not freely tradable, all companies that did business in China, had to convert to fixed rates. Neither central nor for individuals and companies, he was good, therefore, as a reserve currency.
That could now change gradually, mainly because the measure must eventually lead to a release of exchange rates. If there are many Yuan abroad, there will be over sooner or later there is also a foreign exchange market for it. This is in itself encouraging, but certainly for the U.S. threatening.
because they have been able to pay a portion of their debts, because everyone wanted the U.S. dollar as a reserve - and also U.S. government bonds. No other country has so much of the way, China: America's Ministry of Finance estimated the value of U.S. bonds in Chinese hands at around 1.16 trillion dollars. And that's not so bad. Because China has so not interested in a quick fall of the current number one on the foreign exchange markets.
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