China holds massive USD reserves to settle trade because most of that at this time is conducted in USD.
To get a fair idea , one has to add China & Hong Kong to get the total.
https://en.wikipedia.org/wiki/List_of_countries_by_foreign-exchange_reserves
Plaese note that the USA only holds 2.5% of that because it owns the reserve currency.
China began some years ago to cut Yuan/Local currency deal dealing out the USD.
Our Iron Ore exporters last Dec agreed to increasing the %age of China imports
in Yuan/AUD with the intention of that inceasing incrementally over the next 5 years.
This in no way removes the USD as the international pricing benchmark but deals
it out of the actual deal transactions. In other words, its China creep to sidlining the USD
as the global reserve currency .
- Forums
- Economics
- Can China afford to buy Aus products
Can China afford to buy Aus products, page-3
-
-
- There are more pages in this discussion • 6 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)