Wednesday, April 9, 2014

Chinese Yuan Near Reserved Currency Status

More than 40 central banks have invested in the yuan and a few others are preparing to do the same. This is putting the Chinese Yuan currency on the path to reserve status, Standard Chartered said.

"The IMF does not disclose the percentage of reserves held in yuan, but the emerging market countries' share of reserves in "other currencies" has increased by almost 400 per cent since 2003, while that of developed nations grew 200 per cent, according to IMF data.

Pihlman (of Standard Chartered) said "a great number of central banks are in the process of adding [yuan] to their portfolios".

"The [yuan] has effectively already become a de facto reserve currency because so many central banks have already invested in it," he said. "The [yuan] may become a de facto reserve currency before it is fully convertible."
Among the 23 central banks known to have yuan holdings, 11 are from Asian markets with close trade links with mainland China: Australia, Hong Kong, Indonesia, Japan, South Korea, Macau, Malaysia, Nepal, Pakistan, Singapore and Thailand, according to public records from either central banks' own statements or central bankers' interviews with the press. 

Isn't this a clear sign again that the US Dollar is losing its reserved currency status globally? Just look at what Central banks DO not just what they SAY.

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