Currency Wars Deepen: IMF Concedes End To Dollar Hegemony

March 9, 2015

Currency Wars Deepen - IMF Concedes End to Dollar Hegemony

- Dollar has declined as reserve currency over past decade from 70% of global reserves to 61%
- Chinese yuan is growing in stature as international currency
- IMF deputy director calls for de-dollarisation in emerging markets
- Many countries have begun de-dollarising
- BRICS development bank - rivaling the IMF and World Bank - is now operational

Currency wars and the growing trend away from dollar dominance in international finance, particularly in emerging markets, was highlighted in an interesting CNBC article this morning entitled "Is the Dollar Losing its Clout Among EMs?"

It refers to the deliberate and stated policy of "de-dollarisation" around the world, the decline in the use of the dollar in international trade and as a reserve currency and the emergence of the new BRICS bank.

The article quotes best-selling author and Pentagon insider, Jim Rickards. Rickards says that the status of the dollar as a reserve currency is still solid despite its decline over the past decade and despite the rise of other currencies in international transactions.

"The dollar is declining as a trade currency, but it remains strong as a reserve currency. Right now, it's around 61 percent of global reserves, versus 70 percent over a decade ago" he said.

Market Update

Today’s AM fix was USD 1,173.75, EUR 1,077.97 and GBP 776.86 per ounce.
Friday’s AM fix was USD 1,196.50, EUR 1,090.60 and GBP 787.85 per ounce.

Gold fell 2.7% percent or $32.30 and closed at $1,165.70 an ounce Friday, while silver slid 2.1% or $0.34 to $15.87 an ounce. Gold and silver finished down for the week -3.75% and -4.22% respectively.

Gold for immediate delivery rose and then dropped back as the U.S. dollar's rally and Friday's nonfarm payrolls report increased speculation that the U.S. Fed will raise interest rates sooner rather than later.

Important News

Gold Struggles Near 3-Month Low On Dollar, Us Jobs Data - Reuters
Gold Erases 2015 Gains On Concern U.S. Rates Will Rise - Bloomberg
Gold Sinks Nearly 3 Pct To 3-Mth Lows After U.S. Jobs Data - Reuters
Fed Rate Hike Expectations Hit Stocks, Dollar Holds Firm - Reuters
Flipping A Coin: Rare U.S. Coin Market Hits Records - Reuters

Important Analysis

Austria Is Fast Becoming Europe's Latest Debt Nightmare – The Telegraph
Apple May Be About To Polish The Gold Market - CNBC
Apple May Buy 746 Tonnes Of Gold For Its Smartwatches – International Business Times
Celente - Why The Closing Of London Gold Vaults Will Shake The World! - King World News
Gold Is Heading Toward A Critical Point: Charts – CNBC

Courtesy of

Mark O'Byrne is executive and research director of which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth. 

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