Tuesday, March 31, 2009

A Move Away From the Dollar: China-Argentina Currency Swap

China has agreed to a 70 billion remnbi currency swap with Argentina that will allow it to receive renminbi instead of dollars for its exports to the Latin American country.

Xinhua, the official Chinese news agency, said the deal was signed on Sunday by Zhou Xiaochuan, governor of the People’s Bank of China, and Martín Redrado, Argentine central bank president, in Medellín, Colombia, where they are attending a meeting of the Inter-American Development Bank.

You are witnessing the demise of the dollar as the world's reserve currency.

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