China and Japan Ditch the Dollar – Can You Blame Them? 6-1-12

This article shows China and Japan moving further away from the USD as a reserve currency. They have now opened up direct foreign exchange trading between their currencies. | June 1, 2012 10:00 am JST | China and Japan begin direct currency trading | SHANGHAI — China and Japan started direct currency trading on Friday as Beijing marked another stage on its journey to foster the yuan’s use internationally in line with its growing economic clout….. Foreign exchange traders began swapping Japanese yen for the Chinese unit without having to use the US dollar as an intermediary currency when the market opened in Tokyo….. The new system paves the way for “full-fledged direct exchange trading,” Japan’s Finance Minister Jun Azumi said Tuesday….. China is Japan’s largest trading partner, but about 60% of their mutual trade is denominated in U.S. dollars.

For related articles and an earlier announcement by China and Japan to trade using their currencies – and bypass the USD – see my post of May 23, 2012.,34159.msg57673.html#msg57673

What I find most significant is the increasing frequency of articles that announce movement away from the USD and Fed Reserve system by the world’s major economies.

Have a great day! : Historian

Comments are closed.