A few weeks ago, the Chinese Government agreed with Argentina an agreement of exchange of coins with the Chinese Government, which will allow Argentina, unzip your volume of dollars. In addition to the agreement signed with Argentina, China signed other five swap agreements with their counterparts in Korea of the South, Hong Kong, Malaysia, Belarus and Indonesia. The global amount of the agreements is for a total of 650,000 million Yuan (about US $94,000 million). Thus, importers from these countries may ask rendered Yuan the Central Bank to buy products in China and thus limit the effects of fluctuations in the dollar exchange rate. China’s goal of imposing the yuan as an international currency is clear, although the goals have clear boundaries and is why China is driving the replacement of the dollar for a basket of currencies, initiative also supported by Russia and which was presented at the last meeting of the G20. The proposal immediately to replace the dollar has been the use of the special drawing rights (SDRS) that is under the control of the International Monetary Fund. SDRS are currently a basket of currencies comprising the dollar, the yen, the euro and the pound sterling. SDRS are being used by the International Monetary Fund as a virtual asset financing and international reserve.
For Zhou Xiaochuan, Governor of the Bank of the people of China (its Central Bank), the use of SDRS would limit the impact of the volatility of the currency on the stability of economies. In this sense, according to Zhou, the objective of promoting the use of SDRS would be: create an international reserve disconnected from individual countries and able to remain stable in the long term, thus avoiding the inherent deficiencies caused by the use of national currencies. Although the reign of the dollar as a currency leader has its days numbered, it is clear that it is not the intention of any of the countries in question, that the replacement of the dollar as the world leading currency occurs in an abrupt manner. Is that where the dollar lost its relevance as a global currency at a fast pace, will imply a strong loss of value in relation to the rest of the coins, which brings about significant losses for the rest of the countries whose international reserves found in its highest proportion denominated in U.S. dollars. It will trade in local currencies strengthen to developing economies? Will increase global financial stability for the use of a basket of currencies as a new pattern of reference? In principle, both elements appear to mark the new global economic scenario and promise to achieve greater strength and stability for the economies. And while this happens, U.S. must rethink its role in the global economy.