SHOP
Log in
Don't have an account?
Sign Up Here →
Forgot Password?

Another Sign of the Dollar Collapse: World Bank Issues First Yuan Bonds

January 5, 2011

    Chinese yuan
    Image by Philip Roeland via Flickr

    by Jerry Robinson

    In yet another sign of the coming collapse of the Dollar as the sole international reserve currency, the World Bank issued its first bond denominated in the Chinese yuan currency in Hong Kong on Wednesday. The primary purchasers of the two-year bond were Hong Kong-based financial institutions, companies and wealthy individuals. While the issuance raised only 500 million yuan ($76 million), it provides further evidence that the the global economy is in search of alternative currencies to the diseased U.S. Dollar.

    The Chinese yuan currency is not currently traded on the global currency markets. In recent months, however, Beijing has sought to encourage a more widespread use of the currency. In 2010, China began allowing foreign companies to issue debt denominated in the yuan. So far, the Asian Development Bank, Caterpillar Inc. and McDonald’s Corp. have used yuan-denominated bonds to fund their business activities within China.

    The ultimate endgame for China is to promote the yuan (also called the renminbi) to the status of a global currency, similar to the U.S. dollar and the euro. While the yuan is still years away from being able to displace the dollar in global trade, it is inevitable that the U.S. dollar will continue its downward trend which will require the rise of other currencies. The two contenders to watch closely in the coming years are the euro and the yuan.

    Subscribe
    Notify of
    guest
    2 Comments
    Oldest
    Newest Most Voted
    Inline Feedbacks
    View all comments

    Please help us spread the word about FollowtheMoney.com on Facebook, Twitter,
    and any other social media outlets.

    Silver & Gold

    Call 800-247-2812 now for the best prices on gold and silver coins and receive Free Shipping and Insurance when you mention Follow the Money.

    Weekly Newsletter

    Stay in the loop!
    Sign up today to receive our
    weekly e-newsletter.