The bypass of the dollar

us-dollar-gasp

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.

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Singapore Inks Direct Currency Trade, RQFII Quota With China (Oct 2013)

singapore

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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London to become hub for China’s yuan (Oct 2013)

Renmimbi-Yuan

Source: Yahoo! News – London to become hub for China’s yuan

Notable excerpts:

Beijing agreed Tuesday to make London a center for handling investment denominated in China’s tightly controlled currency as the two sides set aside a spat over the Dalai Lama to expand financial ties.

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ECB Agrees on Swap Line With PBOC as Trade Increases (Oct 2013)

Renmimbi-Yuan

Source: Bloomberg – ECB Agrees on Swap Line With PBOC as Trade Increases

Notable excerpts:

The European Central Bank and the People’s Bank of China agreed to establish a bilateral currency swap line, bolstering access to trade finance in the euro area and strengthening the international use of the yuan.

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