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Monday, September 20, 2010

Chinese Renminbi Bought for Reserves by Malaysia

Zerohedge released a post based on an article in the financial times discussing a recent transaction Malaysia made with China.
Malaysia bought renminbi-denominated bonds for its reserves, marking a significant advance for Beijing’s attempts to internationalise the use of its currency, pitched by Chinese policymakers as a long-term rival to the US dollar.
This is very significant as it strengthens the Renmimbi against the dollar (something the US may embrace, as this is something they have been wanting), but it also sets a precedence the worlds government may follow as well bringing the devaluating Dollars reserve status into further question (already under heavy scrutiny).  Malaysia has already embraced gold as a currency as parts of Malaysia are allowed to use either fiat currency or gold for transactions.  A lot of changes happening and coming in the currency wars.  [ Read more ... ]

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