Chinese Exporters Avoid Dollar, Former Reagan Advisor Doesn't Mind

Tuesday, April 1, 2008 11:24 a.m. EDT

The dollar’s decline has resulted in more than foreign central banks looking to diversify out of the currency. Chinese exporters are increasingly favoring non-dollar currencies as well.
Alibaba.com, an Internet broker that connects Chinese exporters to foreign buyers, told the Financial Times that a large majority of its 700,000 Chinese clients have turned away from dollars in settling their transactions with non-U.S. buyers.

The reason: the dollar’s drop makes holding the currency less attractive.

"Everyone has an incentive to diversify their currency exposure, and that applies to the private sector, not just the public sector,â€