A thank you to Bullion Baron for alerting me to this article in the South China Morning Post. It says that there is a report that the World Bank plans to issue SDR denominated bonds in China as early as this month. Below are some excerpts from the article for this news note.
-------------------------------------------------------------------------------------------------
"China might take another big step forward this month in its long-term aim to forge an IMF money system into the world’s dominant currency.
Mainland media group Caixin reported that the World Bank planned to issue bonds denominated in Special Drawing Rights in China as early as the end of this month. It said policy bank China Development Bank was also planning an SDR bond issue.
The SDR is a unit of money created by the International Monetary Fund and defined by a weighted average of various convertible currencies."
. . . .
"China has long had an obsession with the IMF’s SDR and wants to reduce the global reliance on the US dollar."
. . . .
---------------------------------------------------------------------------------------------------
Added comment: Willem Middelkoop will have a new essay out soon related on the SDR. Both he and Jim Rickards have said to keep an eye out for news at the G20 meeting in September. It looks like we are going to have SDR related news for sure coming soon. If these SDR bonds are issued, it could be an initial step towards broader use of the SDR although this South China Morning Post article points out that there are technical issues involved with issuing SDR bonds that will have to worked out and also wonders what the demand will be for such bonds right now.
Added notes: 8-4-16 article featuring Central Bank expert Robert Pringle who says current monetary policies are immoral is now published here.
EpochTimes runs this article on the news
Reuters article on the SDR Bond news - This article says that other entities may also issue SDR bonds including the AIIB. This is the bank Dr. Warren Coats called on to issue these bonds earlier this year which we covered in a blog article here in January 2016. Dr. Coats has worked towards broader use of the SDR for many years and has a proposal to make it global reserve currency. However, he believes that if such a thing were done the currency should be issued by a Currency Board under strict rules to insure the proper amount of currency is issued to maintain a stable value. He and other reform advocates like Robert Pringle do understand that a stable currency value must be the highest priority of a monetary system. Mr. Pringle explains that very clearly in an article published here.
Added notes: 8-4-16 article featuring Central Bank expert Robert Pringle who says current monetary policies are immoral is now published here.
EpochTimes runs this article on the news
Reuters article on the SDR Bond news - This article says that other entities may also issue SDR bonds including the AIIB. This is the bank Dr. Warren Coats called on to issue these bonds earlier this year which we covered in a blog article here in January 2016. Dr. Coats has worked towards broader use of the SDR for many years and has a proposal to make it global reserve currency. However, he believes that if such a thing were done the currency should be issued by a Currency Board under strict rules to insure the proper amount of currency is issued to maintain a stable value. He and other reform advocates like Robert Pringle do understand that a stable currency value must be the highest priority of a monetary system. Mr. Pringle explains that very clearly in an article published here.
No comments:
Post a Comment