USD is dead: China caps its dollar holdings & plans crude oil futures priced in yuan
China’s central bank has said it no longer sees any benefit in increasing its $3.66 trillion foreign currency reserves – already the world’s largest. China will cap its purchases of US dollars in an effort to limit the depreciation of the yuan. ● “It’s no longer in China’s favor to accumulate foreign-exchange reserves,” Bloomberg quoted Yi Gang, a deputy governor at the central bank as saying Tuesday. Decreasing the influence of the dollar and other currencies is a step closer to reaching China’s 2015 goal to “float” its currency and according to the People’s Bank of China will help the everyday Chinese citizen. Between July and September 2013 China’s increased its foreign – currency holdings by $166 billion, boosting it to the world’s highest of $3.66 trillion. This is also more that the Gross domestic product of Germany – the Europe’s biggest economy, Bloomberg reports. This will “basically” end the interference of foreign currency in the Chinese market, and widen the yuan’s daily trading range.
The US Dollar Is Now Collapsing And It Will Eventually Lose The Reserve Status Of The World