This is the first time I've ever heard a Chinese official this high up call for replacing the dollar. Can anyone else think of any other examples? If this is really a new development, then it's very significant news.
There has been news about it but it has not been given much coverage. Christmas eve last, it was reported by AFP and Xinhua (Chinese Govt. Media) that China was trying to create conditions for the yuan to become an international settlement currency and would use the yuan in transactions with neighbouring economies on a trial basis:
I link to a blog and not the articles because I think the blogger makes some great commentary. He also gives his incite to yesterday's news in the first link on the right. Definitely worth a read.
China has made several statements in the last few weeks about their concerns about the dollar. However the real BIG news is not their talk, its their actions. China has been moving their dollar holdings into short-term bills out of longer-term notes. They are positioning themselves so that they can get out of the dollar quickly - and they are doing it in a way that won't raise alarms because they aren't (yet) cashing-in their dollar holdings.
