Currency markets may be in for a period of some turmoil. The Chinese and Japanese governments are becoming less enamored of holding large amounts of U.S. government debt. There are several reasons why China and Japan might worry about a decline in the value of the greenback that would depreciate the value of Treasury Bill holdings. This report examines why the greenback is at the top of the heap rather than the Euro and why some nations may start to lobby for wider usage of Special Drawing Rights.

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