China Pulls A 180, Says US Dollar Will Remain World's Reserve CurrencySubmitted by zooamerica on Thu, 02/21/2013 - 21:13
"The US has halved its oil imports since 2005 and is moving “rapidly towards self-sufficiency”, turning global geo-politics on its head."
China loves the US dollar again as America roars back
China’s central bank has radically revised its view of US economic and strategic power, predicting that the dollar will remain the world’s paramount reserve currency for decades to come.
By Ambrose Evans-Pritchard
Jin Zhongxia, head of the central bank’s research institute, said America’s energy revolution and export revival had shaken up the global landscape and would lead to a stronger dollar over time.
“The dollar’s global dominance will continue,” he said.
Dr Jin said the world was moving to a “1+4” system, with the greenback serving as the anchor of global payments, supplemented by “four smaller reserve currencies” – the euro, sterling, yen and yuan.
“Compared with the euro area, the dollar zone has much greater resilience to shocks. The debt crisis in the euro area has demonstrated the structural weakness of this currency,” he wrote in a paper for the February bulletin of the Official Monetary and Financial Institutions Forum.
The comments suggest a profound shift in thinking about the US since the financial crisis five years ago, when premier Wen Jiabao questioned if Chinese holdings of US Treasuries were “safe”, and the central bank issued a paper calling for a “global currency” run by the International Monetary Fund.
------------full article linked above.
This is HUGE!!! My how things have changed...just when you think the dollar is about to collapse, and a new World "Uno," currency is about to be unveiled, China's central bank comes out and says the Greenback is their preference!!!
What! This is such great news!
I like the idea of the US dollar serving as the, "anchor of global payments," with other currencies competing against it.
The only reason why this is now happening is because America is moving, “rapidly towards self-sufficiency.”
America is fast becoming, "ENERGY INDEPENDENT."