Quote:
Originally Posted by danielsa1775
Brazil is about the 17th or 18th country to do this, not sure what they are trying to acheive? Make its currency more global? Avoid US dollars?
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That is EXACTLY what this is about. Primarily because oil is traded using the US dollar, and the fact that the US is a humungous market, the US dollar has been the reserve currency decades now. The Euro is in the crapper, the Canadian Dollar, Australian Dollar, and the Pound have markets that are too small, and the yuan has the Chinese govt. behind it, and few want that. Still, China has been pushing to make the yuan a viable reserve currency, especially in light of the global crisis. THis is a bid to make sure Brazil and China stay afloat during the turmoil, as Brazil "feeds" China and China pours money into the country. The problem that China will run into is that oil is still traded in Dollars, and no one trusts China's government enough to put money in its currency.
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