The Time Magazine article from October 15, 1979, is titled Shrinking Role for US Money.
Since last November the U.S. has sold $4.2 billion of so-called Carter bonds in West Germany in order to raise marks for the dollar defense. Plans have been worked out to issue more such bonds.
Carter Bonds were treasury bonds denominated in other currencies in order to protect foreign investors from currency fluctuations.
Now, 30 years later, foreign creditors are asking for that same protection.
(Reuters) - A top Chinese banker on Sunday called on the U.S. government and the World Bank to sell yuan-denominated bonds in Hong Kong and Shanghai to encourage the development of debt markets in those centers and to promote the yuan as a major international currency.
He said that foreign currency risk, particularly the risk that the yuan would continue to appreciate against the U.S. dollar as it has in recent years, could be hedged.
Last Wednesday, banking groups HSBC Holdings Plc and Standard Chartered Bank both said they were preparing for yuan-denominated bond issuance in China to help the country develop its local-currency financial markets.
Since the Yuan is still largely pegged to the dollar, I'm not sure how much effect this would have. Unless, of course, China was looking at moving the peg again.