Forex Trading with the U.S. Dollar

235477 Resource 133535 120646 120646 1246283169870 1246283169870 Controlled China Supports Dollar Standard

Chinese support remains for the U.S. dollar as the world's reserve currency

China may be trying to maneuver they yuan into position as the world reserve currency of the future, but for now, Chinese officials continue to support the U.S. dollar as the world's reserve currency. Indeed, even after efforts earlier this year to <a href="http://forex.gftforex.com/public/item/229263" target="_blank" title="reserve currency, U.S. dollar, China reserve currency, Boris Schlossberg, value of dollar, forex trading, spot forex, yuan">push for a new reserve currency</a> (IMF drawing rights), China continues to affirm that the U.S. dollar is currently the only viable choice for a reserve currency. Besides, the political rhetoric is mostly show. As Boris Schlossberg points out in FX360, <a href="http://www.fx360.com/commentary/boris/1485/china-reaffirms-the-dollar-standard.aspx?aid=5704" target="_blank" title="reserve currency, U.S. dollar, China reserve currency, Boris Schlossberg, value of dollar, forex trading, spot forex, yuan">it is in China's best interest for the U.S. dollar to remain the world's reserve currency</a>: <blockquote> Furthermore, as we noted earlier, it is very much in China’s interest to maintain the value of the dollar, both from the balance sheet perceptive (because its holds nearly 2 trillion dollars of US debt), but also because the country runs a massive trade surplus with the US and any additional weakening of the dollar would dampen American demand for Chinese goods. </blockquote> BRIC nations may be struggling with the idea of the dollar as the reserve currency going forward, but the fact of the matter is that the greenback is the best option for now. China may rise as the next economic superpower, and the country may be trying to position itself to take over from the U.S., but the dollar is likely to remain the world's reserve currency for another 15 to 20 years. But it appears that China is willing to wait, and is more than ready to play the long game. 9 application/xml false Boris Schlossberg China reserve currency forex trading reserve currency spot forex U.S. dollar value of dollar yuan Forex Trading with the U.S. Dollar Spot forex from GFT Global Markets http://www.gftuk.com/land/index.asp?aid=53 Mozilla/5.0 (Macintosh; U; Intel Mac OS X 10.5; en-US; rv:1.9.0.11) Gecko/2009060214 Firefox/3.0.11 GTB5 127.0.0.1 127.0.0.1 mmarquit 63.248.48.57 false true false false true 133535 blog blogsite/GFTUK/web