New 'Special Drawing Rights' Bonds sold

Discussion in 'Currencies' started by Roswell Crash Survivor, Sep 2, 2016.

  1. Roswell Crash Survivor

    Roswell Crash Survivor Well-Known Member Silver Stacker

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    Possibly another important step towards reducing the global dependence on the US Dollar as a reserve currency and standard of value.

    "World Bank Bond Issue Gives China Chance to Promote Yuan"
    http://www.wsj.com/articles/world-bank-bond-issue-gives-china-chance-to-promote-yuan-1472643973

    "World Bank backs China's push to challenge US dollar dominance by selling SDR bonds ahead of G20 summit"
    http://www.scmp.com/news/china/econ...cks-chinas-push-challenge-us-dollar-dominance

    For those who are wondering what an SDR is composed of:

    Source: http://www.imf.org/external/np/sec/pr/2015/pr15543.htm
     
  2. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    Shouldnt the headline for this be why is the pound still in there?
     
  3. Topherclaus

    Topherclaus Active Member

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    Headline: The Pound Sterling, the worst asset of 2016?
    Fineprint: also, renminbi bends over uncle Sam once more.
     
  4. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    Appendix 1

    Over subscribed 4:1

    Winning bidders (fictional :))

    Bank of China
    Chinese Industrial Bank
    Chinese commercial bank
    Development bank of China

    All bid the max allowed for the measly $700m lol
     
  5. goldenspike

    goldenspike Member

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    This is a list of the most traded currencies. Of interest is that the Australian Dollar is in the top 5 traded currencies in the world but the Drawing Rights Bonds remove the Australian dollar and replace it with the Yuan.

    1. United States dollar USD ($)
    2. Euro EUR ()
    3. Japanese yen JPY ()
    4. Pound sterling GBP ()
    5. Australian dollar AUD ($)
    6. Canadian dollar CAD ($)
    7. Swiss franc CHF (Fr)
    8. Chinese yuan CNY ()
     
  6. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    ^^ a reserve currency is meant be stable right

    Also I think I am looking at the same list, it NZ$ is 11th above HK$ at 13th and Korean Won at 15th there must be guidelines that it's using that is skewing the numbers.
     
  7. Old Codger

    Old Codger Active Member Silver Stacker

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    When i buy a newspaper under the clocks at Flinders St, do i offer the paper boy an SDR?

    ...and how does he make change?

    OC
     
  8. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    As long the paperboy is willing to accept, it is not an issue. As for getting change well....

    I wouldn't expect the paperboy to carry around enough cash to give you change, just like if you gave him a 400oz Gold bar, $1m US T-Bill or $100,000 Australian issued bonds either...

    Maybe you can accept a personal cheque or an IOU written on the newspaper.
     
  9. Old Codger

    Old Codger Active Member Silver Stacker

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    "or an IOU written on the newspaper."


    That's what the Yanks have been doing for the past 25 years or more. And the mugs of this world are still buying them.

    OC
     
  10. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    Be fair US currency use high grade new cotton pulp, newspaper is a bit cheaper :)
     
  11. goldenspike

    goldenspike Member

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    You could pay in Bitcoin to whoever is prepared to accept it. More likely than paying in SDR.
     

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