"Reserve currency" is the term used to describe a currency that many governments hold significant amounts of in foreign exchange reserves.
By directly converting its currency into Chinese currency, Oz businesses will be able to cut costs and the inconvenience of changing foreign-currency earnings into dollars, thereby encouraging and accelerating even more business with China.
Today, Oz is the fifth-largest source of Chinese imports, notes Tyler Durden of Zero Hedge.
The shift from USD as a reserve currency is very troubling. |