The Latest Challenge to Dollar Hegemony
The Latest Challenge to Dollar Hegemony by Rory – The Daily Coin
We have been following a plethora of “nails” that have been hammered into the coffin of the Federal Reserve Note, U.S. dollar. Over the past several years China has made serious challenges to the world reserve currency system of global trade settlement. China has created direct currency swaps with more than 25 nations around the world and back in October 2017 launched the oil futures contract priced in yuan/renminbi, the Chinese national currency. This presents major challenges to the Federal Reserve Note, U.S. dollar world reserve currency.
Today we learned that China is unleashing another direct challenge to the dollar hegemony as they prepare to launch a yuan-backed metals futures on the London Metals Exchange (LME). This will be a great compliment to the Shanghai Gold Exchange, which has been very successful over the past several years and is already priced in yuan/renminbi.
A metals futures contract denominated in Chinese currency may soon be launched at the London Metal Exchange (LME), according to the exchange chief executive, Matthew Chamberlain.
“At present, investors are trading our products in US dollars. We would definitely like to explore the possibility of launching products denominated in offshore renminbi,” Chamberlain said in an interview with the South China Morning Post.
The LME, which is owned by Hong Kong Exchanges and Clearing (HKEX), currently allows traders to use the Chinese currency as collateral. Last July, the HKEX stock market also launched yuan-denominated gold futures.
LME’s chief executive didn’t specify when the new metals contracts would start changing hands in London. However, Chamberlain is reportedly confident that yuan-backed futures contracts are destined for success, as the Chinese currency is becoming more and more used in global finance.
“Chinese investors are definitely very active customers at the LME. They are trading through mainland brokers who are members of the LME or western firms,” he said, as quoted by the media.
“We believe with the increasing number of Chinese trading in our market, there would be more Chinese companies wishing to join the LME.” Source – RT
The concern I have with this particular situation is the lack of a timeline. Is this another pure speculative “announcement” similar to the “gold backed oil contract” that created such a stir throughout most of 2017? We certainly hope not. The last thing we need is another ghost story detracting from the serious issues of the day that require our undivided attention. We are hopeful this will take root and grow into the challenge that it sounds like it could be.
The gold price suppression scheme, with it’s 40+ year history, has done enough damage and we need something to change. At this point I don’t know if a Chinese run system would be an improvement or not, I just know what we currently have in place is only benefiting the bullion banks, governments and a handful of globalist. I doubt the Chinese would be any better, but there may be a window of opportunity for the people, the gold/silver bugs, to make a play while the two systems cross paths.