Thanks to our friends on Facebook (Cryptocurrencycollectorsclub) we discussed the following question and thought it would be good to gather the following messages shared to read it easier and add more sources.
Facebook Question/Response 7-5-15:
Can anyone help me confirm this? I just heard from a friend that the IMF will stop doing deals in Dollars by October. Apparently China just became the biggest shareholder in the IMF and they have already started doing deals in Yuan. About 200 billion USD in Yuan has been put into this starter project. This is all the information I have right now til I do more research. If this happens won’t the dollar devalue like crazy?
Responses: Twice a decade the IMF reviews possible new entries or removals from the SDR of nations currency list. All included had to meet specific regulations to be a part of the system. SDR was created in 1969 to make it easier for these top countries to pay debts and balances easier within this international system. China is practically demanding to be a part of the IMF and they are in China now to discuss their financial matters.
Around Oct. 20 the IMF will decide if the YUAN will join. Christine Lagarde International Monetary Fund, CEO has publicly said in many videos over the years they are eager to have the YUAN be apart of the system if they can meet the requirements. Predictions world wide are very strong that it will happen. China has already surpassed the US economy and is the #1 exporter in the world. All banks and trading systems on earth already now have a large amount of YUAN that they already deal with daily and they are excited about the addition as it brings a chance to make money. Currently the US Dollar has about 60% of the world market using it while the rest of the world currency make up the other 40%. Estimates are that China could be admitted with taking up to 10% to match size with Euro’s but also could reach as much as 40% and if that is the case it would have an even larger impact.
“In recent years, China has played an increasingly important role in driving global growth, contributing to global economic and financial stability, and helping to improve the international monetary system. As part of the ongoing review of the Special Drawing Rights (SDR) basket at the IMF, the Chinese authorities have stated publicly their interest in including the Renminbi in the SDR basket. We welcome and share this objective and will work closely with the Chinese authorities in this regard. As the Managing Director of the IMF has said, RMB inclusion is not a matter of ‘if’ but ‘when’. IMF Staff Completes the 2015 Article IV Consultation Mission to China
Predictions on how much the dollar will fall literally matters how much of the pie the YUAN (RMB) gets. Either way people will look to move some investments out of Dollars. The day they announce IMF Reserve Status for China markets already expect 100’s of millions of dollars to immediately switch to YUAN and trillions in the next 4-10 years after. So it will not be a total crash by any means but value in the dollar will be lost, and more people will want to take loans in YUAN. The amount of gold China owns also makes their currency very attractive and secure to other countries such as Germany, UK, and France who already are hoping this happens this year.
When regular uninformed U.S. investors find out their investments just took a plunge they will scramble to find something secure to put their money in. Gold, sliver, hard assets, farmland, chinese fund investments such as A shares, and government issued gold are considered alternative places to find safe haven. What most reports are not mentioning is BITCOIN(ALTS) as the other safe haven, but we are seeing it already is proving itself and is ready to be a part of the pie.