Zero Hedge reports that Chile is the latest country to agree to currency swaps with China. So, another country that no longer views the dollar as the reserve currency of the world. From the story:
So to summarize, the list of countries that China is transacting with directly (that we know of), and bypassing the USD entirely, is as follows:
- Japan
- Russia
- Iran
- India
- Brazil
- and now, Chile
In other words, it looks like the BRICs already have their "bilateral" arranagements all sorted out, and are now quietly moving into other suppliers of key resources with swap deals, all without any mention of the word "dollar."
How soon until China re-dips its toe in Europe with a modest "bailout" nobody can refuse in exchange for a simple caveat: you get paid in renminbi?
Of course, like any other commodity, once the demand for dollars declines, so will the value.
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