Below you'll find a list of all posts that have been tagged as “Foreign-exchange reserves”
In the past year the stock markets in China erupted, contracting by nearly 50% in just three months, after having risen in the preceding year by 130%–truly a ‘bubble event’. That collapse, commencing in June 2015, continues despite efforts to stabilize it. Chinese bankers then injected directly $400 billion to stem the decline. Including other government and private sources, estimates …
The Chinese are in the process of displacing the monopoly of the US dollar. They are dropping their US Treasury bonds, stockpiling gold reserves, and opening regional distribution banks for their own national currency. This will give them easier access to capital markets and insulate them from financial manipulation by Washington and Wall Street. Fearing the eclipsing of the US …
Last weekend, we explained why it really all comes down to the death of the petrodollar. China’s transition to a new currency regime was supposed to represent a move towards a greater role for the market in determining the exchange rate for the yuan. That’s not exactly what happened. As BNP’s Mole Hau hilariously described it last week, “whereas the daily fix …
On Tuesday evening, we asked what would happen if emerging markets joined China in dumping US Treasurys. For months we’ve documented the PBoC’s liquidation of its vast stack of US paper. Back in July for instance, we noted that China had dumpeda record $143 billion in US Treasurys in three months via Belgium, leaving Goldman speechless for once. We followed all of this up this …
As the emerging market meltdown accelerates, plunging half of EM equity bourses into bear market territory and wreaking unspeakable havoc on currencies from LatAm to Asia-Pac, analysts and commentators alike have scrambled to find historical analogs that can serve as a guidepost when assessing the damage and, more importantly, predicting where things go from here. One historical episode that’s received …
Russia intends to become the first country among the BRICS group of the world’s five leading emerging economies to ratify an agreement on the group’s foreign currency reserve pool, Russian Foreign Ministry Ambassador-at-Large Vadim Lukov said on Friday. “An agreement will be ratified soon on establishing a pool of foreign currency reserves. Russia will most likely be the first country …
