In the latest sign that China is looking to replace the dollar as the international reserve currency, China’s central bank announced today that it would be engaging in direct currency-to-currency trading between the yuan and the New Zealand Dollar. The People’s Bank of China called this a “significant step forward” according to the official Chinese news agency Xinhua.
This marks just the latest move in China’s currency war: last year, Australia announced that it would directly trade currencies with China, and said that it would begin holding 5% of its reserve currency in yuan. Philip Lowe, deputy governor of the Reserve Bank of Australia, said, “This decision to invest in China is an important one. It reflects the broader economic relationship between China and Australia and our increasing financial ties.” China and Brazil also trade currencies.
China holds 8% of publicly-held United States debt, amounting to approximately $1.2 trillion in bills, notes, and bonds. Brazil owns $211 billion in American debt as well. As China pushes forward its own currency as the world reserve currency, it becomes more and more likely that China will begin undercutting the value of US debt dramatically in order to take out the competition.
This is a copy of the full article provided by the Conservatives at Truth Revolt