The signs that the Chinese are very concerned about holding U.S. debt, which the Fed may monetize through a huge inflation, continues.
The head of China's second-largest bank, Guo Shuqing, has said the United States government should start issuing bonds in yuan, rather than dollars.
It was the first time the head of a major Chinese bank has called for the wider use of the yuan (aka renminbi).
"I think the US government and the World Bank can consider the issuing of renminbi bonds," he said, asking for a "mutual cooperation" between the US and China to promote Chinese financial services.
Guo said he was confident the yuan would become a major currency in the medium-to-long term.
Bottom line: The end of the dollar as a reserve currency is only a matter of time.
No comments:
Post a Comment