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This doesn't seem particularly newsworthy. It's such a tiny blip that it's immaterial. The RMB & USD have traded in a very tight range throughout 2019.
by yeldarb 7y ago
This doesn't seem particularly newsworthy. It's such a tiny blip that it's immaterial.
The RMB & USD have traded in a very tight range throughout 2019.
- ChuckMcM 7y agoReally it is about the trend. China couldn't just dump their treasuries (as explained in the article) as they would lose a lot of value that way. So dribbling them out and exchanging them for gold maximizes the value returned. At $20B/month that is a pretty steady pace of a quarter trillion a year. EDIT: A quarter trillion not billion dollars, thanks.
- nvusuvu 7y agoI think you might have meant a quarter trillion.
- ChuckMcM 7y agoSo true, just 3 decimal orders of magnitude :-). And it would eliminate their holdings in 5 years if they were to stick to it.
- duderific 7y agoI think you meant a quarter trillion? A trillion here, a trillion there, pretty soon you're talking about real money!
- dageshi 7y agoSo far as I know, the rmb/usd rate is still pegged within a range by the chinese government?