China’s central bank governor, Zhou Xiaochuan, is calling for the creation of an alternate global reserve currency (his speech.) Wish I had the time to write more on this because it is a shot across the bow in a geopolitical rivalry between the US and China that is only going to intensify in the coming years. For now China is largely dependent on America’s consumer market and its deep and liquid debt markets as a store of Chinese surpluses, while America is likewise dependent on China to pay for its overspending ways… The dollar’s role as the global reserve currency is a cornerstone of America’s preeminent geopolitical status, this really is what is at stake. Stratfor has a pretty good take on Zhou’s rhetorical flourish. Watch this space…
The Dollar to cease being the global reserve currency?
China’s central bank governor, Zhou Xiaochuan, is calling for the creation of an alternate global reserve currency (his speech.) Wish I had the time to write more on this because it is a shot across the bow in a geopolitical rivalry between the US and China that is only going to intensify in the [...]
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Not any time soon. Remember that China needs to export to USA. For now anyway.
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[...] the other day China’s central bank governor, Zhou Xiaochuan, was calling for the creation of an alternate global reserve currency. Now the Russians are suggesting a partial [...]