The Dollar's Dominance is Diminishing

The day after Christmas, the Chinese yuan, also known as renminbi, rose to an all time high against the U.S. dollar. Today, China and Japan have tentatively agreed to start trading of their currencies directly, leaving the Dollar out of the equation. This is yet another step in the process by which federal reserve notes will be replaced as the world's reserve currency. It's not a question of "if" but rather a question of "when".  For anyone who is paying attention, it's easy to read the writing on the wall.  


If most of your savings is in dollars or dollar denominated assets, are you prepared for a future in which the U.S. dollar's purchasing power is greatly diminished?


To read more about this new agreement between Japan and China - CLICK HERE!

Jim Rogers On the Death of the Dollar and the Ascendancy of the Yuan

Having a fully convertible currency means that it is able to be traded on the foreign exchange market with few restrictions. Trade involving the Chinese yuan, or renminbi however, still has many restrictions placed on it by the Chinese government and neighboring countries as well. 

Many big steps have been taken in the last year, and more recently though, to move the yuan in the direction of a freely traded, fully convertible currency. For example, Bank of China Ltd. just had its request to bring yuan it collected in Hong Kong back to mainland China. And according to the head of the IMF's Asia and Pacific department, people in Beijing are beginning to understand that both exchange rate flexibility and allowing the yuan to appreciate more quickly against the US dollar, will be necessary to control inflation in China and essential for their economy's continued growth as a major player in the global marketplace.

James J Puplava just interviewed legendary investor, Jim Rogers on the Financial Sense® Newshour about this subject and other economic news closely related to it.

To listen - CLICK HERE!

Paving the Way For a Free Floating Yuan

"The yuan has risen 0.2% this week and has accumulated a 5.4% gain against the U.S. unit since June ..."
To read more - CLICK HERE!













The latest news also indicates that China's central bank will likely loosen control over its currency and may even double the rate at which it will allow the yuan to appreciate. 


Also it seems that the world's third largest miner, Rio Tinto of Brazil, is exploring the idea of settling its future accounts in yuan rather than dollars. 


The days of the US dollar as the world's reserve currency could be coming to a end sooner than most would have thought. Maybe having all your savings in US dollars or dollar denominated assets isn't the best idea?

Yuan at Record High Versus Dollar after Treasury Report - BBC News

Continue reading the main storyThe yuan's pricing has been a contentious issue between China and the developed economies

The People's Bank of China (PBOC) fixed the yuan's mid-point at 6.4856 against the US dollar on Monday. China's yuan has hit a record high against the US dollar after the US Treasury department said the Chinese currency was undervalued but not manipulated.

China has been accused by the US and other developed economies of keeping the value of its currency artificially low to boost its exports.

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