"Kerri Shannon writes: China has started diversifying away from the U.S. dollar, yet another sign that it's time to invest in the yuan.
A report from Standard Chartered Bank last week showed China's foreign exchange reserves expanded by $196 billion in the first four months of this year. About 75% of that investment was in non-U.S. dollar assets.
This is the biggest gap between accumulated reserves and purchased U.S. debt by China in at least five years.
As the dollar's value weakens, China has taken steps to distance itself from the currency, and attempted to strengthen its own by investing more in gold and other assets.
Money Morning Chief Investment Strategist Keith Fitz-Gerald said China's diversification means the yuan is backed by better assets than other countries' currencies.
"That is why the yuan is likely to emerge as a new reserve currency, and yet another argument for owning the yuan as an investment," said Fitz-Gerald. "This is the full circle nobody expects and one of the reasons I frequently refer to China's yuan as the only currency on the planet with adult supervision."..."
at http://www.marketoracle.co.uk/Article28920.html
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