China's Plan Will Give Gold a BoostChina is fed up with the U.S. dollar and now is using the Yuan for international trade. If this idea catches on, the U.S. dollar will go belly up boosting gold prices. Maybe $2000 gold may not be to far off. The global economic system is extremely fragile. This will be extremely good for gold stocks.
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"Five major trading cities have got the nod from the central government to use the yuan in overseas trade settlement - seen as one more step in China's recent moves to expand the use of its currency globally.
Analysts said the experimental use of the yuan in trade settlement also reflects policymakers' rising concern over the shaky prospects of the US currency, of which China has large reserves from previous trade growth, and their willingness to gradually expand the yuan's use globally.
"The trial is the latest move toward making the yuan an international currency," Huang Weiping, professor of economics at Renmin University of China, said. "The prospect of a weaker US dollar is making the transition more imperative for China."
https://www.chinadaily.com.cn/china/2009-04/09/content_7660017.htm