The african leaders will debate on the integration of the yuan as a reserve currency, the growth of the bitcoin in 2017 is due to the manipulation of the market, thanks to the United States, Russia and China increase their gold reserves at lower cost.The African Leaders will debate on the Integration of the Chinese Yuan as a Reserve Currency. Central banks and officials from 14 African countries will meet at a forum in Harare to discuss the possibility of using the yuan as a reserve currency for Africa, according to Reuters.
Most countries in the MEFMI (Macroeconomic and Financial Management Institute of Eastern and Southern Africa) region have loans or grants with the Chinese government. "It would therefore be logical, from an economic point of view, to repay in renminbi in order to facilitate trade," said Gladys Siwela-Jadagu, spokesman for MEFMI.
MEFMI members are Angola, Botswana, Burundi, Kenya, Lesotho, Malawi, Mozambique, Namibia, Rwanda, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe.
China's strategic objective of making the yuan an international reference currency was strengthened this year. As the currency stabilized, this helped to increase foreign purchases of domestic bonds and equities.
In other words, the yuan is progressing in its conquest of the American dollar.The growth of the Bitcoin in 2017 is due to the Manipulation of the Market
Last year's rapid increase in Bitcoin is largely due to market manipulation. This was explained by John Griffin, professor of finance at the University of Texas, who has 10 years experience in financial fraud detection, according toCNBC.
The expert stated in a recently published study that at least half of the increase in Bitcoin is due to coordinated price manipulation.
The financial fraud specialist and his associate Amin Shams found that tether was used to buy Bitcoin at key points in its decline, stabilizing and manipulating the price of virtual currency.
Bitcoin rose to $20,000 in December, after starting last year at less than $1,000. This year, Bitcoin lost more than half its value, trading at nearly $6,252.
There are still many doubts about the viability and reliability of crypto-currencies. The volatility as well as the lack of laws to frame these virtual currencies does not help things.
As a result, many investors seek to protect their assets by focusing on investments known to be reliable, such as gold or physical silver.Thanks to the United States, Russia and China Increase their Gold Reserves at Lower Cost
United States efforts to stop the increasing of the gold price in order to support the dollar, allow Russia and China to make a large reserves of physical gold by purchasing big volumes of this yellow metal at much lower prices.
The buying by central banks in the first quarter of 2018 increased of 42% compared to the same period last year, totaling 116.5 tons according to the World Gold Council (WGC). This number represents the highest quarterly total since 2014 according to SEEKING ALPHA.
Over the past twenty years, Russia has increased its purchases of physical gold. Recently the country's gold reserves have risen to 1,909 tons, according to the Russian Ministry of Finance. Since 2000, the country's gold stocks have jumped 500%.
This trend represents a perfect opportunity for investors to buy gold or shares in gold mines, while challenging the dominance of the US dollar as the world's leading reserve currency.
Many investors claim that the price of precious metal is artificially depressed by Western stock markets.