Topic: How To Invest

Pat: I’ve heard rumours about new global currency rules that may be coming later this year. Have you heard any of this yet?

Article Excerpt

The “new global currency rules” idea is part of a marketing campaign by a promotional newsletter in the U.S. and an array of websites that link to it. The premise is that “on October 20th of this year, the International Monetary Fund (IMF) will announce a reserve currency alternative to the U.S. dollar, which will send hundreds of billions of dollars moving around the world, literally overnight.” What in fact might happen is that later this year the IMF may include the Chinese yuan in its official basket of reserve currencies, called special drawing rights (SDRs). SDRs are an artificial currency unit the IMF created to facilitate payments between governments. The basket is reviewed every five years, at which point each currency’s weight is sometimes altered. Adding the yuan to the dollar, euro, yen and pound in the SDRs should, over time, help expand the Chinese currency’s role in international trade and investment and make the world’s central banks more likely to hold…

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