China has told its banks to sell their US dollars and buy Chinese Yuan to prop up the currency
What is at the moment only The World's second largest economy, China has told its banks to sell their US dollars and buy Chinese Yuan to prop up the currency.
The massive dollar dump and snapping up of offshore Yuan will likely have a hugely beneficial effect on the Chinese Yuan but a devastating one on the US economy.
This signifies a stepping up of China's efforts to internationalise its currency.
On the same day China began trials in cross border settlements involving digital currencies as China tries to internationalize its digital yuan for global use.
More than 160 cross border payments and foreign exchange transactions were made totalling more than 22 million US dollars using four central banks.
While the impact of china’s actions on the US is clear, as for the rest of the world, will they maintain their trust in the US dollar despite the endless printing of so-called money and increasing national debt?
Or will they trust the professional way that China is running its own economy?