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BIS: Dollar pre-eminence to remain but role will shrink

The dollar will remain as the world's main currency although its share of central-bank reserves could fall to 50-60% from 65-70%, the Bank of International Settlements forecasts.

The BIS also believes that the role of the yuan will continue to grow as China liberalizes the currency, although it's unlikely to replace the dollar in the next couple of decades.

Comments (6)
  • june1234
    , contributor
    Comments (3525) | Send Message
    a shrinking pre-eminence. A lawyer must have written that headline
    30 Mar 2014, 06:15 AM Reply Like
  • aeroguy48
    , contributor
    Comments (775) | Send Message
    Will this seizure of over $14 billion in assets and 300 people in China, due to high political corruption have any affect on the yuan and China?
    Time will tell.
    30 Mar 2014, 07:42 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (12409) | Send Message
    AS opposed to what, the not seizing the assets of high corruption in the US and elsewhere? The level of US corruption with the 2008 meltdown and following has never been matched in US history and far exceeds $14 billion. So I'd say it will not have an effect. However, China must move to a free floating model, but to do that they will probably demand the ability to track, freeze, and seize whatever bank assets they want much like the US. That in itself lowers the interest in holding such currency.
    30 Mar 2014, 01:35 PM Reply Like
  • aeroguy48
    , contributor
    Comments (775) | Send Message
    Agreed moon, the 2008 meltdown was an example of massive corruption that never has been prosecuted. The incestiuosness between big government, big banks, big insurance companies, big labor has kept the US in an economic malaise for these 6 years with not much end in sight for the foreseeable future. My parallel thinking about the assets of this high government people and their seizing of assets would put a chill on investment and growth in China.
    30 Mar 2014, 05:24 PM Reply Like
  • minecanary
    , contributor
    Comments (856) | Send Message
    Spoken like a banker who knows where his bread is If you think politicians twist in the wind, watch a banker sniffing for money.
    30 Mar 2014, 12:24 PM Reply Like
  • Michael Nau
    , contributor
    Comments (972) | Send Message
    I certainly hope the dollar's importance shrinks. I'm sick of our trading partners hoarding dollars in order to get a trade advantage. They should get growth from productivity gains, not currency manipulation, because in the end nobody wins that game.
    30 Mar 2014, 12:25 PM Reply Like
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