September 11, 2008

IF YOU WERE RUNNING CHINA... (via Patrick H):

Beijing swells dollar reserves through stealth (Ambrose Evans-Pritchard, 8/26/08, Daily Telegraph)

China has resorted to stealth intervention in the currency markets to amass US dollars, using indirect means to hold down the yuan and ease the pain for its struggling exporters as the global slowdown engulfs the economy.

A study by HSBC's currency team in Asia has concluded that China's central bank is in effect forcing commercial banks to build up large dollar reserves, using them as arms-length proxies in a renewed campaign of exchange rate intervention.


...wouldn't you be investing in our future, not theirs?

Posted by Orrin Judd at September 11, 2008 12:06 AM
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