According to the Wall Street Journal, China is considering allowing currency trading of the Yuan in Singapore. If this happens, it will be the same as or similar to America's use of London as the primary centre and conduit for US Dollar trading in London. That made the expanded use of the dollar as a vehicle for global trade and finance possible. This is not just the trading of dollars, but any financial instrument denominated in dollars.
As I've said in my research workshops and classes for years, China is playing a very smart and methodical game internationally. In the past few years, it has diversified its asset portfolio, has invested in securing its supply chain for production, and has shifted the balance of economic activity to allow more domestic consumption on top of exports to Europe and the United States. The remaining thing it needs to do is expand the share of global transactions and investments denominated in its own currency. With global investors looking to diversify away from the dollar, with excellent economic growth and a huge domestic market to fall back on, their chances of success are excellent.
As I've said in my research workshops and classes for years, China is playing a very smart and methodical game internationally. In the past few years, it has diversified its asset portfolio, has invested in securing its supply chain for production, and has shifted the balance of economic activity to allow more domestic consumption on top of exports to Europe and the United States. The remaining thing it needs to do is expand the share of global transactions and investments denominated in its own currency. With global investors looking to diversify away from the dollar, with excellent economic growth and a huge domestic market to fall back on, their chances of success are excellent.
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