Monday 26 December 2011

The demise of the dollar

BBC News reports:

China and Japan have unveiled plans to promote direct exchange of their currencies in a bid to cut costs for companies and boost bilateral trade.

The deal will allow firms to convert the Chinese and Japanese currencies directly into each other.

Currently businesses in both countries need to buy US dollars before converting them into the desired currency, adding extra costs.

It's surprising that it's taken them this long.

The dollar-centric monetary order that has prevailed since WWII is collapsing, and good riddance.

The prosperity of billions of people will depend on what replaces it.

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