New Move to Make Yuan a Global Currency
China has launched trading in its currency in the U.S. for the first time, an explicit endorsement by Beijing of the fast-growing market in the yuan and a significant step in the country’s plan to foster global trading in its currency.
The state-controlled Bank of China Ltd. is allowing customers to trade the yuan, also known as the renminbi, in the U.S., expanding the nascent offshore market for the currency which began last year in Hong Kong.
This advance by the Bank of China comes right after the U.S. put pressure on China to let its currency rise in value. America has blamed an unfairly valued yuan for exacerbating the U.S. trade deficit with China. The plans for convertibility are indicative of Chinese power, as China, currently the world’s second-largest national economy, recognizes that as a global power it must have a global currency.
Did anyone say anything about going back to the gold standard? They seem to be buying alot of gold! Maybe it is just my imagination. I wonder??
Seems like our troubles began AFTER we came off the gold standard. Am I right? What do you think? I would love to know!