"Changes coming?"
Small change.
There are about $280 billion in SDRs on issue. The current weightings (2010) are USD 41.9%, Euro 37.4%, Yen 9.4% and the Pound 11.3%.
https://www.imf.org/external/np/tre/sdr/sdrbasket.htm
Let's assume the the Yuan is admitted with a 10% weighting, and the weighting of each existing participant are reduced proportionally:
The shift might cause the selling of $11.7 billion in US Treasuries as reserve assets are reorganised.
That is not going to collapse the US treasury market and cause a run on the dollar. So if the Yuan is admitted to the SDR basket, I do not expect disruptions to currency and bond markets that might justify investment in defensive assets like precious metals.
- Forums
- Commodities
- GOLD
- Gold
Gold, page-53
-
- There are more pages in this discussion • 3,584 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)