How Yuan Reserve Currency Approval Will Doom the Dollar

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. Continue reading

What The World’s Biggest Banks Have In Store For The U.S. Dollar

Central bankers from Beijing to Brasilia have been acquiring a lot more dollars of late, but the overweight of the greenback has reached its limits. There is only one way left to go. It is time to sell the dollar once again.

Or so says Jerome Booth.

Booth has been in the currency and fixed income markets since 1999. That’s when he helped launch the Ashmore Group, one of the largest pure-play emerging market fund managers in the world with around $70 billion under management. Before he retired to write books and launch his new private equity firm New Sparta Limited, Booth was a regular source of mine here at FORBES. He’d talk about the wonders of emerging market debt; their relative strength compared to the Western world and how they’ve improved  from their “Third World” days of yesteryear; and the day of reckoning that would come when the Chinese yuan becomes a reserve currency. Continue reading