"China and New Zealand announced a landmark deal on Tuesday that allows the direct trading of the two countries currencies."
"The deal, which takes effect on Wednesday, ends the need for companies and currency traders to convert Chinese yuan or New Zealand dollars into a third currency (usually US dollars) when making or receiving payments."
"New Zealand's currency is the sixth to be granted direct-trade status, after the US dollar, Japanese yen, Australian dollar, Russian rouble, and Malaysian ringett."
"It makes sense for this country to follow in Austrlia's footsteps and notch a convertibility deal'" Fran O'Sullivan (a columnist at the New Zealand Herald) said in a recent article.
my comments: This article illustrates how China steadily moves towards bypassing the US dollar around the world. Russia recently threatened to discontinue using the dollar if harsh sanctions are imposed. All these seemingly separate events are actually part of a pattern if you follow the news. War today is not fought so much with military weapons. Moreso with financial weapons.
While China has tried to stay publicly neutral on the situation in the Ukraine, they are clearly aligned with the BRIC nations when it comes to monetary system change. They want the US dollar to lose sole reserve status. They want the IMF restructured to gain more influence. They have openly called for a new global reserve currency. They are also buying gold by the hundreds of tons per month (Russia has been a huge buyer as well). All these events tie together if you follow them. We are seeing a contest for the future of the monetary system in our view. We need to watch all this and how the IMF evolves in reaction to all this.