Sasha Cekerevac writes: While many people are aware that the Chinese economy is now the second-largest in the world, China’s currency, the yuan or renminbi, is also moving upward in the world rankings in terms of global transactions.
According to the Society for Worldwide Interbank Financial Telecommunication (SWIFT), the world’s global payment system, the yuan has moved up from 20th in the rankings in January 2012 to 14th position in December 2012. The Chinese yuan is now above the Danish kroner in terms of global payments. (Source: “RMB Tracker: January 2013,” Society for Worldwide Interbank Financial Telecommunication web site, January 24, 2013.)
Why does this matter to the average American?
The point is that the rise of the Chinese economy over the past decade and the looser restrictions that the Chinese government is placing on the yuan mean that global businesses and investors have an alternate choice to the U.S. dollar.
With the U.S. national debt level rising to mountainous status, business leaders and investors will begin to raise serious questions about the viability of America’s currency.
No longer is America the only formidable player in town.
Full article: Wake-Up Call for America: China’s Currency Growing Worldwide (Market Oracle)