Jim Rogers, who joined George Soros to start the Quantum hedge fund in the 1970s, said the Chinese yuan may overtake the US dollar as the most accepted currency among the world's central banks.
The yuan may surge in years ahead and the US dollar will fall, Rogers said.
"If there's a currency that has the potential to replace the dollar, the only one I can see on the horizon is the renminbi," Rogers, 63, said in an interview in Singapore on Monday. "The renminbi's going to go much, much higher," he said, declining to give a forecast.
It may take decades for China to achieve reserve status for a currency that it doesn't yet allow to be held outside of the country. The US dollar made up 66 percent of world official foreign currency holdings in 2004, according to the IMF. China ended its decade-old US dollar peg last July.
The yuan closed at 8.0127 against the dollar as of 3:30pm in Shanghai yesterday from 8.0137 on Wednesday. The Chinese currency on Wednesday had its biggest gain against the US dollar since last July's revaluation.
Exchange-based trading in the yuan ends at 3:30pm, while direct dealing between banks continues for two hours. The yuan closed at 8.0115 at 5:30pm, according to the Web site of the China Foreign Exchange Trade System in Shanghai.
Rogers wrote about his travels across China and the rest of the world in the books Investment Biker and Adventure Capitalist.
The New York-based investor said he's on the road again -- to Singapore, Hong Kong, Taiwan and Japan -- to help UBS AG market commodities in Asia.
"The US dollar is in the process of losing its status as the world's reserve currency," Rogers said. "The US dollar's going to go down a lot in the next decade or so."
DECOUPLING? In a sign of deeper US-China technology decoupling, Apple has held initial talks about using Baidu’s generative AI technology in its iPhones, the Wall Street Journal said China has introduced guidelines to phase out US microprocessors from Intel Corp and Advanced Micro Devices Inc (AMD) from government PCs and servers, the Financial Times reported yesterday. The procurement guidance also seeks to sideline Microsoft Corp’s Windows operating system and foreign-made database software in favor of domestic options, the report said. Chinese officials have begun following the guidelines, which were unveiled in December last year, the report said. They order government agencies above the township level to include criteria requiring “safe and reliable” processors and operating systems when making purchases, the newspaper said. The US has been aiming to boost domestic semiconductor
Nvidia Corp earned its US$2.2 trillion market cap by producing artificial intelligence (AI) chips that have become the lifeblood powering the new era of generative AI developers from start-ups to Microsoft Corp, OpenAI and Google parent Alphabet Inc. Almost as important to its hardware is the company’s nearly 20 years’ worth of computer code, which helps make competition with the company nearly impossible. More than 4 million global developers rely on Nvidia’s CUDA software platform to build AI and other apps. Now a coalition of tech companies that includes Qualcomm Inc, Google and Intel Corp plans to loosen Nvidia’s chokehold by going
ENERGY IMPACT: The electricity rate hike is expected to add about NT$4 billion to TSMC’s electricity bill a year and cut its annual earnings per share by about NT$0.154 Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has left its long-term gross margin target unchanged despite the government deciding on Friday to raise electricity rates. One of the heaviest power consuming manufacturers in Taiwan, TSMC said it always respects the government’s energy policy and would continue to operate its fabs by making efforts in energy conservation. The chipmaker said it has left a long-term goal of more than 53 percent in gross margin unchanged. The Ministry of Economic Affairs concluded a power rate evaluation meeting on Friday, announcing electricity tariffs would go up by 11 percent on average to about NT$3.4518 per kilowatt-hour (kWh)
OPENING ADDRESS: The CEO is to give a speech on the future of high-performance computing and artificial intelligence at the trade show’s opening on June 3, TAITRA said Advanced Micro Devices Inc (AMD) chairperson and chief executive officer Lisa Su (蘇姿丰) is to deliver the opening keynote speech at Computex Taipei this year, the event’s organizer said in a statement yesterday. Su is to give a speech on the future of high-performance computing (HPC) in the artificial intelligence (AI) era to open Computex, one of the world’s largest computer and technology trade events, at 9:30am on June 3, the Taiwan External Trade Development Council (TAITRA) said. Su is to explore how AMD and the company’s strategic technology partners are pushing the limits of AI and HPC, from data centers to