Source: BullionStar – The bypass of the dollar
The current monetary system of the world is also known as the Dollar Standard. It started in 1971 when then US president Richard Nixon severed the last vestiges of the dollar’s link to gold. Prior to 1971, the world was on the Bretton Woods monetary system in which foreign central banks were able to exchange dollars for physical gold at the US Treasury at a rate of 1 troy ounce of gold for 35 dollars.
Source: Bloomberg – PBOC Will ‘Basically’ End Normal Yuan Intervention: Zhou
Notable excerpts:
China’s central bank will “basically” end normal intervention in the currency market and broaden the yuan’s daily trading limit, Governor Zhou Xiaochuan said, without giving a timeframe.
Source: CNA – S Korea, Malaysia sign US$4.7b currency swap deal
South Korea and Malaysia on Sunday signed a currency swap agreement worth $4.7 billion, Seoul’s central bank said, in a move to encourage bilateral trade and help curb currency swings.
Source: Mises.org – How Much Longer Will the Dollar be the Reserve Currency?
We use the term “reserve currency” when referring to the common use of the dollar by other countries when settling their international trade accounts. For example, if Canada buys goods from China, it may pay China in US dollars rather than Canadian dollars, and vice versa. However, the foundation from which the term originated no longer exists, and today the dollar is called a “reserve currency” simply because foreign countries hold it in great quantity to facilitate trade.
Source: Bloomberg – Singapore Inks Direct Currency Trade, RQFII Quota With China
Notable excerpts:
Singapore and China will introduce direct trading between their currencies, helping the city-state compete with Hong Kong and London as an offshore yuan hub.
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