China Announces New World Reserve Currency
Renminbi The New World Reserve Currency?
Simon Black from Sovereign Man traveled to Bangkok, Thailand, a while ago. On the way to his hotel he bumped into a very special billboard… a billboard that announced the Chinese Renminbi as the new world reserve currency – “RMB: New Choice, The World Currency”.
The billboard was from the Bank of China, but the Chinese government has a 70% stake in the bank. The fact that this billboard is located right next to one of the busiest airports in the world underlines that this is a very special message and not a joke. China is literally advertising its currency beyond its borders.
Chinese World Reserve Currency And Gold
The Chinese currency is on the rise internationally and has been chosen as a worthy alternative to the US dollar on multiple occasions. Trading hubs for the renminbi are popping up everywhere like in Singapore, Luxembourg, London, Frankfurt and Toronto.
Multinationals like McDonald’s are already issuing bonds in renminbi and Great Britain has also already issued bonds in the Chinese currency. A new world reserve currency in China will most likely have to be coupled with gold.
Disclosure: None.
When a Chinese person buys goods in the United States for export to China they use dollars, when an American buys goods in China for export to the United States they use dollars. Until this changes and until Chinese currency is not fixed and backed by US dollars it will never become a reserve currency. One billboard does not a currency make.