The International Monetary Fund, IMF, has given the green light to accept the Chinese currency, the Yuan into its foreign exchange basket. The move paves the way for the IMF to place the Yuan on a par with the U. S. dollars. This according to Reuters is the latest in a series of global developments that threatens to eliminate the U. S. dollar as the world’s reserve currency. Experts predict that this announcement will trigger one of the most profound transfers of wealth in our lifetime. The IMF is one of the most secretive and powerful organizations in the world, it monitors the financial wealth of more than 185 countries.
It also establishes global money rules and provide ‘bailout’ assistance to bankrupt nations. The Wall Street journal reported that the IMF officially greenlighted the acceptance of China’s currency-the Yuan-into the IMF’s foreign exchange basket. This marks the first time in history the IMF has expanded the number of currencies in the foreign exchange basket. This means that the Chinese currency will now become a viable global alternative to the U. S. dollar. According to Juan Zarate, who helped implement financial sanctions while serving in George W. Bush’s treasury department, “Once the (other currency) becomes an alternative to the dollar, rules of the game begin to change”.
Leong Sing Chiong, Assistant Managing Director at a major central bank, said this dollar alternative “is likely to transform the financial landscape in the next 5-10 years”. Currency expert Dr Steve Sjuggerud warned “I’ve been active in the market for over two decades now, but I’ve never seen anything that could move so much money, so quickly. The announcement will start a domino effect, that will basically determine who in America gets rich in the years to come, and who struggles”. For the last 600 years, there have been six different global reserve currencies controlled by world super powers. The latest-the U. S. dollar- has dominated world currency for about 88 years.