Saturday, December 5, 2015

With new Chinese (Swift) system, yuan use in Japan has doubled in the last year

It is one thing when China’s new internationalization becomes a part of the emerging market economies, but it is something very different when it begins to make headway into long-standing dollar strongholds such as Europe and Japan.  And with China’s new found recognition as a global reserve currency in the IMF’s SDR basket, and the creation just a few months ago of an alternative SWIFT (CIPS) system, that is exactly what is now happening as Yuan use in trade with Japan has doubled in just the past year alone.
Japan has been entrenched with the dollar ever since the end of World War II, as has most of the world because of Bretton Woods, and the polar reserve currency system.  But as China took over the reins as the number one producer in the entire global economy, the desire to end use of the dollar as a middleman has led more and more nations to seek the ability to have direct bi-lateral trade with the Yuan currency, and 2015 has been the year of this breakthrough.


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