The US dollar once again is under attack as the world’s reserve currency. Late December of last year the world’s second and third largest economies Japan and China held important discussions, coming to an agreement for opening up currency swap lines between the two countries.

Swap Lines

The Prime Minister of Japan Yoshihiko Noda and the Premier of China Wen Jianbao agreed to conduct bilateral trade. The agreement to open currency swap lines between the two currencies will also be forgoing the use of the dollar for trading in the future. The two countries have a long history in the past of not being able to agree mutually on foreign policy decisions or economic issues. However this time around they both agreed that trading between the two…

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