You are here
Does China have enough U.S. dollars to survive the trade war?
By Karen Yeung
South China Morning Post, Hong Kong
Friday, May 30, 2019
The Chinese government is officially sitting on the world's largest stockpile of foreign exchange reserves, but it has been scrambling recently to block backchannels for capital outflows as trade tensions with the United States increase.
Beijing's increasing scrutiny of the use of the U.S. dollar by Chinese companies and individuals, in the absence of any immediate signs of a financial crisis, along with accelerating efforts to lure in foreign capital, have raised suspicions among analysts that the world's second-largest economy is worried about the risk of running short of the U.S.
... Dispatch continues below ...
Buy metals at GoldMoney and enjoy international storage
GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit:
http://www.goldmoney.com/?gmrefcode=gata
On the surface, China should be the last country to worry about a shortage -- about two-thirds of its U.S.$3.1 trillion worth of foreign exchange reserves, the world's largest, are believed to be held in U.S. dollar-denominated assets.
But the huge foreign reserves and a relatively stable currency do not reflect the true stresses underlying the economy, analysts said, because the concerns are that those reserves may not be enough to provide the safety buffer needed to pay for China's imports and pay off its debt in adverse circumstances if the yuan faced a devaluation or a sharp drop in value. ...
... For the remainder of the report:
https://www.scmp.com/economy/china-economy/article/3012460/does-china-ha...
* * *
Help keep GATA going:
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:
