Remember this photo from March?
The IMF yuan reserve currency approval ensures that the days of the dominance of the U.S. dollar are coming to an end.
“China’s [yuan] is ultimately destined to replace the U.S. dollar as the world’s primary reserve currency, while China’s central government bond market will become the world’s primary reference market for fixed income,” Jan Dehn, head of research at Ashmore Group, wrote in a research note.…
Yuan Reserve Currency Status Was Long-Planned
The IMF yuan reserve currency approval is the latest step in China’s decades-long strategy to replace the U.S. dollar as the world’s primary reserve currency, a status the dollar has held since edging out the British pound in the middle of the last century.
Even before the yuan reserve currency approval becomes official next October, we’ll start to see changes.
At least 10% of global foreign currency reserves – $1 trillion – will switch into the yuan practically overnight, mostly at the expense of the U.S. dollar.
But Money Morning Chief Investment Strategist Keith Fitz-Gerald believes that $1 trillion figure vastly underestimates what lies in store for us…
Full article: How Yuan Reserve Currency Approval Will Doom the Dollar (Money Morning)