Is this the Start of the Emergence of the Yuan as Major Reserve Currency

[Rubber Duck]

Asian finance ministers have agreed plans to pool the region's vast financial reserves to protect their currencies from speculative attack.
The agreement, reached at a meeting in Japan, comes almost 10 years after speculators triggered an economic crisis across the region in 1997.....

http://news.bbc.co.uk/2/hi/business/6628401.stm

[Drewbert]

Interesting.

Seems they want to fix problems without involving international orgs that are able to be leaned on by the US Gov to impose "punative measures".

Good for them.

[Rubber Duck]

After the last debacle who can blame them. There were a lot of structural problems in Korea that did need sorting out but there is deep suspicion that whole situation was engineered and exploited to leave Asian assets in US hands.

Funny thing is that the Asia probably own a lot more of America today than America manage to con them out of back then. Of course the other reason for making alternative arrangements is that the IMF has traditionally sourced much of it cash from the US. The US hasn't got any money and those that were crippled by the IMF last time around are not about to step into the breach. It may well be that many have recognised that need alternative arrangements because the IMF is in danger of becoming a lame duck.

It would seem that China is going to play the US at its own game and use its financial muscle to excert influence in the Far East, much as the US has in the past. A kind of regional financial war if you like. It would seem there can only be one winner there.