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| Down Under |
| Oz to ditch USD as reserve currency, convert to Chinese Yuan |
| 2013-04-03 |
| "Reserve currency" is the term used to describe a currency that many governments hold significant amounts of in foreign exchange reserves. By directly converting its currency into Chinese currency, Oz businesses will be able to cut costs and the inconvenience of changing foreign-currency earnings into dollars, thereby encouraging and accelerating even more business with China. Today, Oz is the fifth-largest source of Chinese imports, notes Tyler Durden of Zero Hedge. The shift from USD as a reserve currency is very troubling. |
| Posted by:Omanter Glinerong8657 |
| #3 Correction: The proposal is to make the AUD directly convertible to Yuan, as the USD and Yen are at present. Not much real world impact, except slightly lower forex costs. |
| Posted by: phil_b 2013-04-03 16:37 |
| #2 This confuses 3 different things. Making the Yuan fully convertible, which it isn't currently. Highly unlikely IMO. Setting up a AUD/Yuan forex market. No big deal and minimal real world impact. If there are benefits in doing it, it would have been done by now. In practice Australia, like most countries has a mix of currencies in its reserves, and no indication of any change in this. |
| Posted by: phil_b 2013-04-03 16:29 |
| #1 The printing of US dollars to fund debt which no one, now even the Chinese, will buy is even more troubling. |
| Posted by: Iblis 2013-04-03 12:05 |