More on the Global Reserve Currency Idea

234118 Resource 128460 120646 120646 1243950636360 1243950636360 Controlled China Backs Off On Replacing the Dollar as the Global Reserve Currency

After talks, China agrees that the dollar will be the global reserve currency for a long time to come

One of the more interesting developments during the month of March was the call, made by the Chinese, for a replacement of the dollar as the global reserve currency. <a href="item/229263" target="_blank" title="global reserve currency, reserve currency, U.S. bond holdings, China reserve currency, Chinese yuan, U.S. dollar, forex trading, investments, Timothy Geithner">China had called for special drawing rights</a> on the International Monetary Fund as the new reserve currency. Additionally, China has been entering into bilateral agreements with a number of emerging markets to increase the use of the yuan as a reserve currency. Not only that, but China has been diversifying its holdings to include more European investments and energy investments. China cites concerns with regard to its U.S. bond holdings. With a skyrocketing U.S. deficit, quantitative easing by the Fed, and loose monetary policy, it is little surprise that China is concerned that inflation is on the way -- and that this inflation is ready to erode the value of China's U.S. investments. However, after some talks with Secretary Treasury Timothy Geithner, <a href="http://money.cnn.com/2009/06/02/news/economy/china_dollar.reut/index.htm?section=money_topstories" target="_blank" title="global reserve currency, reserve currency, U.S. bond holdings, China reserve currency, Chinese yuan, U.S. dollar, forex trading, investments, Timothy Geithner">Chinese officials have agreed not to try to replace the U.S. dollar</a> as the global reserve currency -- at least for now. China appears to be interested in a recovering U.S. economy, and, in any case, even with China's best efforts, it could be at least a decade or two before it is strong enough to overcome the U.S. dollar and replace it as a global reserve currency. 9 application/xml false China reserve currency Chinese yuan emerging markets forex trading global reserve currency investments reserve currency Timothy Geithner U.S. bond holdings U.S. dollar More on the Global Reserve Currency Idea A look at the possibility of a new global reserve currency http://bankling.com/2009/what-everyone-ought-to-know-about-the-world-currency-what-geithner-really-meant-sdrs-and-more/ U.S. Dollar in Forex Trading News, information and analysis for forex traders http://www.fx360.com/?aid=5704 Mozilla/5.0 (Macintosh; U; Intel Mac OS X 10.5; en-US; rv:1.9.0.10) Gecko/2009042315 Firefox/3.0.10 GTB5 127.0.0.1 127.0.0.1 mmarquit 63.248.1.10 false true false false true 128460 blog blogsite/GFTForex/web