New 'Special Drawing Rights' Bonds sold

Roswell Crash Survivor

Roswell Crash Survivor

Well-Known Member
Silver Stacker
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:

IMF said:
In accordance with the adopted formula, the following weights will be used to determine the amounts of each of the five currencies in the new SDR basket that will take effect on October 1, 2016:

U.S. dollar
41.73 percent

Euro
30.93 percent

Chinese renminbi
10.92 percent

Japanese yen
8.33 percent

Pound sterling
8.09 percent
Click to expand...
Source: http://www.imf.org/external/np/sec/pr/2015/pr15543.htm
 
Topherclaus said:
Headline: The Pound Sterling, the worst asset of 2016?
Fineprint: also, renminbi bends over uncle Sam once more.
Click to expand...

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
 
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 ()
 
^^ 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.
 
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
 
Old Codger said:
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
Click to expand...


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.
 
"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
 
Old Codger said:
"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
Click to expand...


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