On Aug. 5, an official from the People's Bank of China (PBoC), published an article in a leading Chinese market journal suggesting that now would be a good time to convene a new 'Bretton Woods' conference with the intention of creating and implementing a new gold backed reserve currency to replace the dying dollar.
Yao Yudong of the PBoC's monetary policy committee has called for a new Bretton Woods system to strengthen the management of global liquidity. In an article in the China Securities Journal, Yao called for more power to the IMF as international cooperation and supervision are needed. - Zerohedge
Last September, China made an initial move against the dollar when it created a new oil wholesaling structure which would allow countries to buy and sell the commodity in currencies other than the petrodollar. This policy was the first in over 40 years that challenged dollar hegemony, and in that time, it has opened the door for many more trade agreements across Asia that bypass the dollar and current reserve currency.
Other regions outside Asia are also recognizing the rise of the Chinese currency in international transactions at the same time many nations seek to divest themselves of dollar reserves. In March of this year, the Bank of England became the first primary central bank to allow currency swaps of the Chinese Yuan, ahead of states such as France and Switzerland who are in negotiations to do the same. All this, at a time when Yuan denominated bonds have increased 171 times worldwide since the credit crisis of 2008, and global trade in the Yuan has gone from 0% to 12% in just five years.
The average life-cycle of a strictly fiat currency throughout history is just 30 years, with a ceiling period of around 42 years. As of 2013, the dollar has reached that threshold since it was adopted in its current form in 1971, and in those 42 years of global dominance, destructive monetary polices by the central bank are quickly bringing its worldwide acceptance to an end. And with the Federal Reserve's ongoing QE programs that promote money printing over resolving the enormous debt issues still hampering the U.S. economy, China appears ready to implement its next move in dethroning king dollar, by calling for a new Bretton Woods conference that would favor their currency to be the next world reserve.