3 ms·

Great article! I was not aware of China's need for dollars due to dollar denominated debt. One question I still have is how/why they ended up with dollar denomi

by hencq 7y ago

Great article! I was not aware of China's need for dollars due to dollar denominated debt. One question I still have is how/why they ended up with dollar denominated debt as opposed to debt in RMB? Also, who currently holds this debt?

deleted 7y ago
[deleted]
himlion 7y ago
Because the interest rate on RMB denominated debt would be (much) higher, since there is a significant currency risk.