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There is. China essentially needs to sell off a lot of yuan and buy up a lot of dollars to keep its currency weak, and it does this by purchasing vast amounts o
by weavejester 13y ago
There is. China essentially needs to sell off a lot of yuan and buy up a lot of dollars to keep its currency weak, and it does this by purchasing vast amounts of US debt. There's a series of videos about it at the Khan Academy if you're interested:
https://www.khanacademy.org/science/core-finance/money-and-banking/china-us-debt-situation/v/floating-exchange-resolving-trade-imbalance https://www.khanacademy.org/science/core-finance/money-and-b...