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They reasonably expect to be able to trade it for money, should they need to.
by ThrustVectoring 11y ago
They reasonably expect to be able to trade it for money, should they need to.
- bcg1 11y agoWhy don't they have stocks, diamonds, or any other types of valuables in their vaults?
- ThrustVectoring 11y agoUh, what? They do. The Chinese government owns approximately $60 billion worth of gold, and $1.2 trillion worth of US treasury bonds.
- bcg1 11y agoLet me rephrase... why don't they have anything other than gold or cash equivalents?
- ThrustVectoring 11y agoThey're very much risk-adverse (for good reason). In exceptional circumstances, they will take on other assets, though. See - the US Treasury's stake in General Motors.