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Yup, that's why China lost 3.8Trillion out of their 7Trillion wealth in the last decade. https://www.forbes.com/sites/insideasia/2017/02/22/china-capital-flight
by bbstevecou 8y ago
Yup, that's why China lost 3.8Trillion out of their 7Trillion wealth in the last decade. https://www.forbes.com/sites/insideasia/2017/02/22/china-capital-flight-migration/ https://www.forbes.com/sites/insideasia/2017/02/22/china-cap...
And why China is in deep trouble because they have 3Trillion (supposedly) in foreign reserves, but IMF said China needs at least 2.5Trillion for normal import/export operations. So really, they only have 500B in foreign reserves. And now they're going through reserves even faster, selling dollars to prop up yuan, since yuan has now fallen 10% within the last few months.
- pas 8y agoWhy do they need 2.5T USD for import-export? Could you elaborate on this?
- simonh 8y agoThey need the reserves to cover their credit risk. This Forbes article lays it all out pretty well. https://www.forbes.com/sites/salvatorebabones/2018/05/24/china-is-sitting-on-3-trillion-in-currency-reserves-but-is-that-enough/#de570a65fce8 https://www.forbes.com/sites/salvatorebabones/2018/05/24/chi...