from Chuck Butler, Daily Pfennig:
This past month marked the 10th anniversary of the Chinese government’s decision in July 2005 to lift the Yuan/Renminbi peg to the U.S. Dollar, commemorating the country’s initial move toward joining a select group of economies managing global reserve currencies. So, we thought this currency would be an appropriate one to revisit in the latest installment of Currency of the Month.
First, a quick note about reserve currencies. Throughout history, the list of reserve currencies has varied, dating back to the fifth century B.C. when the Chinese liang and Greek drachma ruled supreme, through more recent history where we’ve seen a number of currencies in the primary spot since the 1400s. And today, the U.S. dollar occupies the top spot and has done so since the mid-1900s.1
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