Written by Miriam L. Campanella.
China’s economic strength often is referred to $3 trillion in foreign currency reserves. Piled up since the 90s with the start of the new economic policy, the composition of this wealth is made up by 70 percent (or $2.3 trillion) in U.S. dollar assets. Yet, , if China were planning for a sell-out, the Fed’s zero-bound interest rate and a depreciating dollar, would earn China very little of these riches. Continue reading “China’s unloading of FX reserves, spillbacks, and quantitative tightening”