Australia dumps USD$ for Yuan

[Ross]

Sorry people but it looks like the USD$ is gradually dying as
the worlds reserve currency .

Australia and China are now trying to promote mutual
trade valued in Yuan rather than USD$ .

The central banks of China and Australia signed $30 billion currency swap agreement to ensure the availability of capital between the trading partners, the Reserve Bank said in March.

Read more: http://www.smh.com.au/business/marke...#ixzz202grJF7F

[NowVoyager]

Be interesting how this will affect US and AU relations. Doesn't there exist a mutual defense agreement between us? And IIRC wasn't it more or less based on the potential threat of aggression by mainland China?

That said, I too see nothing good in the near term (or long term) for the USD. But I also believe it's an orchestrated decline and demise.

[Potemkin]

Originally Posted by Ross

Sorry people but it looks like the USD$ is gradually dying as
the worlds reserve currency .

Australia and China are now trying to promote mutual
trade valued in Yuan rather than USD$ .




Read more: http://www.smh.com.au/business/marke...#ixzz202grJF7F

Sorry Ross. People have been saying that since the early 1980's but at that time it was Japan.

Eventually, yes, but not now.

I am not sure how a AU$30b currency swap counts as dumping except in an anti-American context.

AU$30b is a gnat in when compared to either GDP. (AU: AU$925b, China: 10799b yuan.)

Australia and China have an excellent trade relationship (major trading partners) only because Australia has natural resources and the technology in place to take it from the ground.

When the Chinese learn all it needs from Australia and can get their own mining modernized it will be all over for Australia.

[Sysiphus]

Originally Posted by Potemkin

When the Chinese learn all it needs from Australia and can get their own mining modernized it will be all over for Australia.

From Africa apparently. The USD has many, many problems, but competition from the CHY is not one of them.

[Ross]

When the Chinese learn all it needs from Australia and can get
their own mining modernized it will be all over for Australia.

I completely agree .