China and Japan Continue to Liquidate US Treasury Holdings: What It Means - 24/7 Wall St.: "November marked a record month for China in terms of the pace of its liquidation of foreign exchange reserves. The People’s Bank of China reported on Monday, December 7 that foreign exchange reserves, which mostly consist of U.S. Treasury debt, dwindled by another $87 billion in November. This constitutes a stunning 2.5% drop in one month.
Since peaking at $3.99 trillion in June 2014, China’s central bank has sold off more than half a trillion dollars of (mostly) U.S. treasuries, accounting for 14% of its entire stockpile. At this rate China’s foreign exchange holdings will be liquidated within nine years. While there is no reason to assume the current rate will continue for that long, it does illustrate how fast the debt and currency markets are moving, hinting at possible instability ahead"
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