Is China dumping the dollar or playing a financial shell game? A look into the cunning strategy of hiding US assets to appease politicians and dodge sanctions.
I think it is too risky for China to be keeping huge sums of USD. Their USD could easily be frozen by the West. Moreover, China's trade with the US has deteriorated and looks likely to continue deteriorating. The USD has also weakened in value and demand for T bills has not been hot.
I think it is too risky for China to be keeping huge sums of USD. Their USD could easily be frozen by the West. Moreover, China's trade with the US has deteriorated and looks likely to continue deteriorating. The USD has also weakened in value and demand for T bills has not been hot.
China earns $1 trillion in trade every year, which is why it hasn't decoupled from the US dollar.
Interesting take but I think a deal to get both sides out of these imbalances is closer than people think: https://thecaspianportfolio.substack.com/p/trump-and-xi-positioning-for-deal?r=7q8s4h