Copyright 2012 by John T. Reed
A reader has apprised me that the Australian and Canadian dollars are now officially certified by the International Monetary Fund as reserve currencies. This a bit technical but as the article I link to below says, it has both practical and symbolic significance.
The article is NEWS ANALYSIS: Australian, Canadian dollars get IMF status as reserve currency.
I point it out because those are two of the four currencies I recommend you move your rainy-day savings to if you are currently a holder of U.S. dollars. The other two are Swiss francs, which was already an IMF reserve currency and New Zealand dollars which are not but probably only because it is a relatively small country.
For more on why and how you should move U.S. dollars to Australian, Canadian, and New Zealand dollars and Swiss francs, see the second edition of my book How to Protect your Life Savings from Hyperinflation & Depression.
The other reserve currencies are the euro, the British pound, and the yen. In other words, the reserve currencies are the big-time, solid ones that the IMF considers holding of which as evidence of your country’s economic strength. IMF does not get involved with individuals, but I and other knowledgeable people would consider an individual’s holding of these currencies as evidence of your financial strength in that you are in a good position to avoid loss of purchasing power in the U.S. dollar or any one of the reserve currencies.
There used to be only two reserve currencies, the pound and the U.S. dollar. Now there are seven. The IMF and the rest of the world are anxious to have more reserve currencies because of the current shakiness of the U.S. dollar, the yen, and the euro.
Conspicuous by their absence on the list are the Chinese yuan, South Korean won, and Singapore dollar.
If I had to add two more currencies, they would be those of Denmark and Sweden, not any of the Asian ones.
In short, this IMF action is good news for those of you who have followed my advice and my example and converted U.S. dollars into Australian and Canadian dollars. It also essentially show that I am not the only one who has made this analysis and come to this conclusion.