For China, moving away from the dollar makes sense

Updated

China's leaders make no secret of the thinking behind their well-publicized moves to diversify their county's massive foreign exchange reserves away from the U.S. dollar. Being so dependent on the greenback's value is simply imprudent, they say, given the size of their reserves -- some $2.1 trillion -- and the global nature of their exports and imports.

While some see this diversification as dooming the dollar, there are plenty of good reasons to believe China's leadership isn't singling out the United States but lessening their dependence on all currencies other than their own.

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