Despite the dollar on the precipice of 14 year highs, China still chugging away in attracting nations to the Yuan

Thanks to Mario Draghi’s big yawn announcement earlier this week where he jawboned that little would change with the European Central Bank’s monetary policy now, and in 2017, the dollar rebounded from its recent decline below 100 to soar back to just below 102 on the index.  And with this level the dollar remains above its 13 year highs achieved shortly after Donald Trump was elected President, and hovers just below a 14 year high point in overall strength against major currencies.

Yet despite the fact that the dollar has once again become the go to currency for investment and safety, on Dec. 9 the China Foreign Exchange Trade System (CFETS) announced that they were signing up seven new currencies into its bi-lateral trading system, and brings their overall number to 23 different monetary units.

China announced Friday it will launch direct trading of its currency yuan with seven more currencies on its inter-bank foreign exchange market next Monday.

The seven currencies are Swedish krona, Hungarian forint, Danish krone, Polish zloty, Mexican peso, Turkish lira and Norwegian krone, according to the China Foreign Exchange Trade System (CFETS).

The move will bring the number of foreign currencies that are allowed direct trading with the yuan to 23.

— En.people.cn

Along with the dollar, the Chinese currency is one of the stronger ones in a world where mass devaluations, and country’s desperate for exports, have driven down their currencies to near historic levels.  And with a new trade war expected to emerge from the Trump administration due to his rhetoric of re-negotiating all current and open trade policies, China appears to be in high gear to gobble up as many partnerships as possible that are willing to trade without the need or use of the reserve currency.

Ever since around 2013, China has decided on a plan where the world should not be bound or restricted by a uni-polar world currency, especially when the United States has seen fit to use its power over money as an economic weapon.  And with 23 nations who are willing to conduct trade in their own currencies in China’s back pocket, it appears that any trade discussions between Xi Jingping and Donald Trump will involve the ending of the dollar as the recognized sole trade currency, as they will have enough collateral to demand a seat at the monetary table in exchange for concessions in bringing industry and jobs back to the United States.

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