What a difference three months make. Back in August, the IMF went to Beijing to determine whether the Yuan was ready for acceptance into the Special Drawing Rights (SDR) basket of currencies. And when they left, they announced that the Chinese currency was not quite ready for the big time, and that its inclusion would be addressed once again a year from now, or at the very least sometime well into 2016.
But the world right now is not in some stagnant era of history, and events are accelerating on par with the predictions of Daniel. And following London’s creation of an RMB Bond hub in October, the putting online of a new SWIFT type system (CIPS), and the creation of new counterfeit proof bills printed at China’s central bank for use internationally, on Nov. 14 Christine Lagarde announced that she is recommending immediate inclusion of the Yuan into the SDR basket.
The People’s Bank of China, the central bank, welcomed on Saturday a statement made by IMF chief Christine Lagarde recommending inclusion of Chinese yuan in Special Drawing Right(SDR) currency basket.
Lagarde said in a statement that the staff experts, in their report to the IMF board, ruled the yuan or renminbi (RMB) now “meets the requirements to be a ‘freely usable’ currency.”
The yuan failed to be included in the SDR in 2010 when the IMF said the currency did not meet the “freely usable” criteria, which was deemed as a key hurdle to the yuan joining the basket.
Seen as the leading currencies of international trade, the SDR basket is currently made up of the dollar, euro, Japanese yen and the British pound. – China.org.cn
The Yuan is already the second most used currency in trade settlement, passing the Euro on the list in 2013. And with four major economies now opening RMB bond hubs to accelerate the internationalization of the Chinese currency, it will only be a matter of time before the Yuan vies to surpass or become equal partners with the dollar as the global reserve medium for trade.
One has to wonder if the explosion of military movements abroad, and perhaps even false flag terror attacks that have occurred in recent days, are a backlash to the world’s rejecting the dollar and now having the option of using a different currency for settlement that is not controlled by the powers that be in the West. And as the Eurozone appears to be ripe for revolution from multiple fronts, and the world teeters on the precipice of a global war that could affect several continents, the underlying outcome of the dollar vs. the Yuan will have profound effects on the economic, military, and political policies that soon will be implemented by nations in the West, Middle East, and of course, Asia.