China positioning its currency for a run at world supremacy

This is what happens when you become the worlds largest creditor nation, your currency commands more respect. On the other hand when you run huge trade and budget deficits, your currency becomes shunned by the rest of the world. What we are seeing is the beginning of the end of the U.S. dollar as the world's reserve currency. Prosperity is moving from the West to the East and is starting to accelarate.-Lou

China positioning its currency for a run at world supremacy

Reporting from Shanghai -- Could the world's currency of choice have the face of Mao Tse-tung on it, not George Washington? Quixotic or not, the Chinese are preparing for that day.

In a series of what might be called baby steps, Chinese officials recently have moved to globalize the yuan and promote its influence overseas, with Shanghai designated as command central. Since last December, China has signed deals with six countries, including South Korea, Malaysia and most recently Argentina, for currency swaps that would inject Chinese money into foreign banking systems.That would allow foreign companies to pay for goods they import from China in yuan, bypassing the dollar -- the currency that dominates international trade and finance, including foreign exchange reserves.

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