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Friday, October 05, 2012

China To Challenge US Dollar Reserve Currency Status

China To Challenge US Dollar Reserve Currency Status

  ECB policy makers kept the central bank’s key interest rate at a record low of 0.75 percent.

China is actively taking steps to phase out the US dollar which will decrease volatility in oil and commodity prices and deride the ‘exorbitant privilege' the USA commands as the issuer of the reserve currency at the centre of a post-war international financial architecture which is now failing writes Alan Wheatley, Global Economics Correspondent for Reuters. China is frustrated with what it sees as the US government’s mismanagement of the dollar, and is now actively promoting the cross-border use of its own currency, the yuan, or also called the renminbi, in trade and investment.

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