The IMF has confirmed the Yuan/Renminbi is set to become a Global Reserve Currency at an Economic Forum in Hong Kong.
With China's economy gaining global strength, the renminbi is set to become a global reserve currency, Zhu Min, deputy managing director of the International Monetary Fund, said Tuesday at an economic forum in Hong Kong.
Yesterday I wrote about the crossborder loans China was doing, before the Yuan becomes a Reserve Currency, their saying the "unloved dollar' and the amount of gold they are importing. Besides the rumors of them backing their currency by gold.
David Morgan of the Morgan Report and Silver-Investor.com did an interview with me about the subject, Germany's gold and the Silver shortage/manipulation.
David mentioned that things take time to happen and as I add on the third part of the interview is that it already has been years and maybe the situation will start going faster.
It seems to me with the Yuan being called a Global Reserve currency now even by China itself, they have laid out the ground work for changes to be made in a short amount of time. China does not reveal their hand until everything is already said and done. Considering the dollar has been the only "Global Reserve" currency for decades but this month the Yuan is becoming attached with that name.
The dollar demise has been talked about for years now. Many had been saying "anytime" but it has been long and drawn out. China is very smart as they take their time and put everything in place before they reveal or make their big moves. Has the time now come?
The Premier of China had gone to Saudi Arabi and Dubai a year ago. He stayed a week there having meetings and making agreements.
SHARJAH, UAE- China signed economic and trade agreements worth100 billion yuan($16 billion) with Saudi Arabia and the United Arab Emirates( UAE) as Premier Wen Jiabao wrapped up a six-day visit to the Middle East on Thursday.
Are those agreements now coming into fruition? Is Saudi Arabi ready to be one of the last Middle Eastern countries to trade in something other than the "Petrol Dollar?" If Saudi Arabia begins oil trade in something other than the dollar, then it really is game over for the dollar as the Global Reserve Currency and any strength it now has. It only has strength because all of the other countries are devaluing their currencies against the dollar for trade. With the Fed printing the dollar non-stop, currency wars are raging, no one wants to have the strong currency due to trade and their products being un-affordable to other countries.
The first currency swap agreement with Arab nations, worth35 billion yuan, was also signed in Abu Dhabi, Wen told the Fourth Arab-China Business Conference in Sharjah on Wednesday.
But once the dollar is no longer a worry or concern for trade then all the other countries will be able to stop their currency devaluations against the dollar because a new Global Currency backed by Gold will be the hero of the world. The only country that will be left all to itself with their inflating currency will be the United States.
It seems the proximity of this occurrence is now much closer with both the IMF and China itself using the words "Global Reserve Currency" for the Yuan.
UPDATE 1/31/13 - Here is the link to my interview with Bill Murphy the founder of GATA and lemetropolecafe about it all today.