The "Red Dragon" is awakening and the Chinese yuan is continuing to threaten U.S. dollar hegemony.
Its modernizing its financial system at a rapid pace despite China's skeptics continuing to criticize the country's potential. But they aren't just ignoring China's promising investment potential.
Earlier this year we discussed how Canada was aiming to host the first Chinese currency hub in the Americas.
Well now it's official, with Canada's financial capital, Toronto, the chosen winner.
With so much international business still transacted in U.S. dollars, China's central bank, like most others, holds dollars in reserve, or buys them as needed.
Doing business this way is cumbersome and expensive since currencies first need to be converted into dollars for the buyer's payment, and then back out of dollars if the seller wants to return it to his home currency.
Increasingly, countries are seeking alternatives when trading with the world's number two economy... and China's only too happy to help.
The only questions left to ponder after this and other related developments, are who will benefit, and who will lose...
China's political and economic presence surges daily. Lockstep with that surge is the growing significance of its currency.
Along with China's emergence as the world's second-largest economy, its yuan recently displaced the euro and became the second-most used currency for international trade.
Chinese leaders are intent on internationalizing their currency by growing its acceptance, perhaps even challenging the U.S. dollar as the new reserve currency, a trend I've highlighted here before.
To reach that goal, new yuan trading centers are being established.
But the location of the next major trading hub is almost certainly not where you'd expect.
And the implications will redefine the power centers of global commerce... Full Story
China's "ghost cities" present the West with the shocking images of vast urban areas that sit nearly empty.
In a striking report, shown recently on CBS News' "60 Minutes,"there are rows of high-rise apartment buildings, tracts full of suburban American-sized detached homes and imposing government edifices in China's western desert that are empty and utterly devoid of any signs of life.
Their existence has raised more than a few red flags among investors.
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The yuan will replace the U.S. dollar as the world’s dominant reserve currency. That’s why now’s a good time to invest in the yuan. Read more...
It’s the Yuan’s world, and the West is just living in it.
It’s no coincidence that Yuan-settled trade jumped 41.3% - to nearly three trillion Yuan - in 2012, after it increased by more than 300% in 2011.
In fact, since June 2005, the Chinese Yuan has risen 24.66% against the U.S. dollar, backed in part by 1.3 billion consumers and real assets. To borrow a tech term, China's currency is the world’s new “killer app.”
Here’s how you can make it part of your investing future…
