Friday, December 4, 2015

Not even a day after the IMF added the Yuan to the SDR, the world rushing to capitalize on it

On Nov. 30 the IMF fully announced that the Chinese Yuan would be accepted as a global currency within the banks Special Drawing Rights (SDR) basket of currencies, and with this move China is now an international player in the global monetary system.  And perhaps most interesting in the next stage of support towards the future of the dollar and its singular reserve currency status, is that countries and banks are already rushing in to push the currency towards greater use just one day after it became part of the IMF.
Following the IMF’s announcement, the nation of Argentina publicly threw in their support for the Chinese Yuan to expand its reach in global trade and monetary hegemony.  And this act will help open the door for many more nations to divest their dollar reserves since many of the mechanisms that required the use of the dollar have already been duplicated by Beijing over the past three years.

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