A "renminbi bloc" has been formed in East Asia, as nations in the region abandon the U.S. dollar and peg their currency to the Chinese yuan... And now seven out of 10 economies in the region -- including South Korea, Indonesia, Malaysia, Singapore and Thailand - track the renminbi more closely than they do the U.S. dollar... According to the latest report by the Society for Worldwide Interbank Financial Telecommunication, or SWIFT, renminbi-denominated trade accounted for 10 percent of China's total foreign trade in July. The figure was zero just two years ago. From July 1 to Aug. 31, global payments in the renminbi rose 15.6%, according to Swift as payment in other currencies fell 0.9% on the average...We see three obvious points:
- The move from the dollar to the renminbi is now occurring rapidly. Demand for the U.S. dollar is falling as a direct result of this shift. Even Chinese media are attempting to cover up the collapse of the dollar.