Re:China state banks seen selling US dollars to prop up yuan
by simonblack on Tuesday July 25, 2023 @06:39PM
(#36870685)
And another reason is to get rid of a lot of US cash that's being devalued quickly due to inflation.
You'll probably see them stockpiling commodities for the same reason.
If the US can confiscate 300 billion dollars of Russian foreign reserves at the stroke of a pen, all the more reason for China to reduce her own trillion dollars or so of foreign reserves as soon as possible to prevent the same sort of confiscation happening to China. It's called 'hedging'.
They sell because they want to get rid off the dollars.
You'll probably see them stockpiling commodities for the same reason.
If the US can confiscate 300 billion dollars of Russian foreign reserves at the stroke of a pen, all the more reason for China to reduce her own trillion dollars or so of foreign reserves as soon as possible to prevent the same sort of confiscation happening to China. It's called 'hedging'.