Confidence in the US Dollar continues to erode

| Thursday, May 21, 2009

Brazil and China eye plan to axe dollar

In what was interpreted as a sign of Chinese concern about the future of the dollar, the governor of China’s central bank proposed in March that the US dollar be replaced as the world’s de-facto reserve currency.

In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency ”that is disconnected from individual nations” and modelled on the International Monetary Fund’s special drawing rights, or SDRs.

Hold on to your hats – the US Dollar is dropping like a stone:

5-21-2009 US Dollar Index

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