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In order for China to continue to export to America which they obviously want todo, they have to maintain exchange rates stable. The only way for them to do thi
by bubbleRefuge 4y ago
In order for China to continue to export to America which they obviously want todo, they have to maintain exchange rates stable. The only way for them to do this is to accumulate dollars.
- pishpash 4y agoYou got it backwards. People want to export to the US in exchange for dollars only if dollars are worth something. If the dollar won't hold its value well enough people will find other markets and hold other currencies.
- bubbleRefuge 4y agoNo I don't think so. Dollars sitting in a bank have zero utility. At the end of the day what is worth more in real terms, an IPhone today or some 1000 dollar deposit for tomorrow ? So who winning in that trade off?