IMF Confirms Chinese Yuan/Renminbi Set to Become a Global Reserve Currency

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.

Premier Wen Jiabao and the ruler of Sharjah, Sultan bin Mohammed al-Qassimi,attend the Arab-China Business Conference in the Gulf emirate on Wednesday. [Photo / AFP]

  SHARJAH, UAE - China signed economic and trade agreements worth 100 billion yuan ($16billion) with Saudi Arabia and the United Arab Emirates (UAE) as Premier Wen Jiabao wrappedup a six-day visit to the Middle East on Thursday.

The first currency swap agreement with Arab nations, worth 35 billion yuan, was also signed inAbu Dhabi, Wen told the Fourth Arab-China Business Conference in Sharjah on Wednesday.

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.

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.  

Chinese News Article: Crossborder Yuan Loans - "Before it becomes a Global RESERVE Currency."

Update -1/30/13 - IMF Confirms Yuan a Global Reserve Currency

It is the first time I am seeing the words from China that comes right out and says what the plans for the Yuan is.

The first batch of cross-border yuan loans agreements were signed on Monday after thecentral government approved the Qianhai area in Shenzhen to test a freer yuan before it becomes a global reserve currency.

 As the loans come from Hong Kong, the move is a test offurther capital accounts opening by allowing offshore funds tobe transferred to the mainland.

Previously, offshore yuan could flow back to the mainland onlythrough yuan-denominated trade and renminbi qualified foreigninstitutional investors.He added that the yuan is marching gradually and steadily toward becoming a global currency,and he expects more breakthroughs on that front this year.

They have never said "Global Reserve Currency" before.  They have said "Convertible currency" and other words.

China has actually imported more gold and silver than they admit to.  They imported an estimated 1000 tons of gold over the last few years but experts believe it was much more than that.   They have also been importing silver in major quantities that are not being revealed.  I read a story the other day about someone in China trying to buy silver and gold bullion but the place was nuts with crowds all trying to buy the gold and silver the dealer had just gotten.

Kingworld News has an article about China being a gold backed currency.

Jim Willie did an interview last week and he mentioned that China was going to take it slow and not be totally overt in becoming the Global currency because they don't want the U.S. to start a war for some made up reason against china.

Mining.com has the rumor China plans on importing 5000 to 6000 tons of gold this year (article from 2012). 

unconfirmed speculation" that China – the world's number one producer and second-placed consumer (at the moment) – is gearing up to buy up to at least 5,000 to 6,000 tonnes starting before the end of the year.

Silver is huge in China too.  There has been a lot of talk in the "silver world" saying there is a major shortage.  Besides the fact that the 2013 Eagles sales have been suspended due to over 5 million orders in the first few days of 2013.   The majority of silver mined is used for industrial purposes and it seems there is a shortage happening.

The writing is on the wall.  China plans on having a Gold backed Global Reserve Currency.  I have written about the agreements China has with other countries and has already began trading in Yuan instead of dollars.  The BRICS began those trades last year.  The only thing that is keeping the dollar as the "reserve currency" right now is because it is the "Petrol Dollar."   Saudi Arabia is the reason the dollar is still the oil trading currency.  Is it any wonder that Obama bows to the King of Saudi Arabia as the U.S. is obviously beholden to them otherwise it would not still be the official reserve currency of the world.

Once Saudi Arabia decides to go with the rest of the world and begins using other currencies for oil as India, Iran, Russia and China already do.... it will be game over for the dollar.

Obviously the day is getting closer since the article says "Global Reserve Currency" from China Daily.  Again they have never used those words before from what I have seen.  They have used "Global convertible currency."  Remember China purchased the London Metals exchange last year, which began using the Yuan and the CME began added the Yuan as a trading currency last year too 

China holds things very close to their chest in information and they don't put information out normally until deals are done.  So with them allowing "Global Reserve Currency" words out, what deals have been done already and how fast will it all go down and the dollar with it?

Some of my favorite metals sites are: David Morgan of Silver-Investor always has great information about Silver and what is really going on.   I go to Gata, Got Gold Report , and 24 hour Gold for the latest in gold information.

Few probably are aware of this, but long time subscribers to The Morgan Report (TMR) were notified that a meeting had taken place in South East Asia roughly a decade ago discussing -- you guessed it --A GOLD BACKED YUAN.

Most people in the West do not understand the Chinese mind set of looking out several generations, 

Edit to add:   I found another article today on the same Chinese News site - Their frustration with the dollar titled "The Unloved Dollar"

But the dollar's role as international anchor is beginning to falter, as emerging markets everywhere grow increasingly frustrated by the Fed's near-zero interest-rate policy, which has caused a flood of "hot" capital inflows from the United States. That, in turn, has fueled sharp exchange-rate appreciation and a loss of international competitiveness - unless the affected central banks intervene to buy dollars.

Wow - they have really put out information now as I have never seen before and the two articles being out on the same day...... says something is already happening, we just don't know the full extent yet.  But I have a feeling since they have come right out and said "Reserve Currency" and "Unloved Dollar" whatever the changes of Currency will happen this year.

Update - 1/29/13  - David Morgan of Silver Investor allowed me to interview him today about this subject, the silver shortage and Germany and their gold.