Chinese media urges for less reliance on US dollar

Chinese-US-dollarChinese media reports are suggesting that significant damage has been done to the US dollar's reputation and it cannot fully recover even as the US congress agreed to reopen the government by agreeing to raise the debt ceiling.

The US Congress and President Obama have reached budget agreement on Wednesday, bringing an end to the partial shutdown of the US government and paving the way for reopening of the government agencies and departments. The temporary settlement would affect growth in the US economy, which was already affected due to the government's partial shutdown. There are serious concerns over government's borrowing authority and the risk of another partial shutdown.

People's Daily said that the US dollar supremacy in the global financial markets has been universally condemned since the 2008 global financial crisis. The People's Daily also said that the other currencies like the Yuan and euro could emerge as possible alternatives to replace the US dollar. Globalisation of currencies including Euro, Japanese yen, British pound, Australian dollar, Canadian dollar and the RMB is allowing people to bypass the US dollar through currency swap agreements.

On the other hand, The Nan Fang Daily asked the global financial markets to reduce their reliance on the American currency. The paper said that the Yuan as the currency can eventually become more popular than the US dollar.

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