Outcast - "And yet, the endless mindless predictions of "the demise of the dollar". Been thinking more about the concept of a hemisphere reserve currency vs a global reserve currency. Just to make sure we all start on the same page. From wiki:
"A reserve currency is a currency that is held in significant quantities by governments and institutions as part of their foreign exchange reserves. The reserve currency is commonly used in international transactions, international investments and all aspects of the global economy. It is often considered a hard currency or safe-haven currency. People who live in a country that issues a reserve currency can purchase imports and borrow across borders more cheaply than people in other nations because they do not need to exchange their currency to do so."
And then I discovered I might be a tad premature with the hemisphere reserve concept.
So it's not so much which currency is a reserve currency (RC) but how much is any one country's currency is held "in reserve". All this hand ringing over the yuan becoming the RC and I don't recall anyone expressing such concern over the euro in recent years. In 2009 the euro was 27% of the reserves while the $ was 62% and the Chinese renminbi was not held by anyone. During the previous 10 years the euro increased 10% while the $ decreased 10%: why no alarm bells back then?
And while in 2016 the renminbi finally made the status at 1.1% there were 4 countries whose currencies were held in higher volumes then the Chinese currency: Britain, Japan, Canada and Australia. So once again the MSM grabs onto a theme (China's currency on the verge of becoming THE global reserve currency) and beats it to death. But it worked, at least with many of the gullable here. LOL. Will the renminbi increase in the years to come? Probably. But is it about the bump the US off the throne anytime soon? No. In fact it has a long way to go to take the #2 slot away from the euro.
Again another great example of how a 30 second web search produces FACTS that exposes the hype for exactly what it is: bullsh*t. Think of all the time wasted by some folks here going on and on about how the yuan was in the process of destroying the $. Efforts better spent on discussing the Rockman's profound geologic skills in my very humble opinion. LOL.
Know you really know everything you need to know. The FACTS:
https://en.m.wikipedia.org/wiki/Reserve_currency