Inquiring minds are looking east this morning decause the China Central Bank wants fewer US Treasuries:
“We should change the single-currency focus on buying U.S. Treasuries and adopt a more diversified structure for foreign exchange reserves to reduce risk,” Xu Nuojin, deputy-director of the People’s Bank of China in Guangzhou, was quoted as saying by the Securities Times.
China should channel more of its foreign exchange reserves into resources and equities, Xu said.
Analysts estimate that about two-thirds of the reserves, which hit a record $2.65 trillion at the end of September, are parked in dollar assets, although the currency composition is a state secret.
This is an earthquake about to happen if China stops purchasing US Dollars.
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