China may be ramping up de-dollarization by dumping US Treasuries, experts say | WHAT REALLY HAPPENED

China may be ramping up de-dollarization by dumping US Treasuries, experts say

Beijing may be speeding up the diversification of its foreign exchange reserves away from US dollar assets in response to Washington’s potential sanctions, the South China Morning Post reported, citing analysts.

Data from the US Department of Treasury shows China cut its holdings of US government debt for three consecutive months to $1.07 trillion in late August, the lowest level since March 2017.

The State Administration of Foreign Exchange (SAFE), China’s foreign exchange regulator, said in its most recent annual report that US dollar assets accounted for 58 percent of the nation’s reserves in 2015, unchanged from a year earlier. This means US dollar assets account for about $1.8 trillion of China’s total reserves of around $3.14 trillion.

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