We simply think what might happen if the decision to fully liberalize the yuan, against China’s strong external surplus. This would generate a sudden appreciation of the currency that would be strengthened with speculative actions from investors who bet in that direction, which would impact strongly on the dynamic export and consequently economic growth given the difficulties of immediate replacement of external demand by domestic demand. This undoubtedly is highly dangerous for an economy that must grow at least 8% to avoid absorption problems in the workforce which is permanently integrated into the market, may affect political stability. What can we expect then about the future of the yuan in the international context? What is observed in the actions taken by the Chinese Government, we can expect a slow but continuous progress of china’s currency to position itself as an international currency. Juan Pablo Cardenal de El Economista, noticed the home on 28 September, long March to dethrone the dollar, day in which the Chinese Government intends, for the first time, broadcast on Hong Kong’s sovereign bonds denominated in Yuan per USD value 878,5 million. The own Ministry of Finance of China, Xie Xuren, considers this event as a crucial step to internationalize the yuan status, and at the same time promote the strengthening of Hong Kong as an international financial centre. In recent months it has agreed with the central banks of Argentina, you Korea South, Malaysia, Hong Kong, Belarus and Indonesia the formalization of swap Exchange so that those countries can pay their Chinese imports in Yuan. It has also begun to gradually reduce its holding of bonds from the Treasury of the United States, but this withdrawal should not be violent.

Thus, the yuan moves and increasingly increases its international presence, while very few wonder would be a good decision to accept the yuan as an international currency or will be taking a risk for the stability of economies? Horacio Pozzo investments on WALL STREET who have silver, use this crisis to buy.

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