China / exchange rate

Today’s papers report that the people’s republic has announced that it will re-consider putting all its reserves (growing at USD 15bn / month) into USD securities. This seems very important and could really…..

…..have a lot of major impacts, including
1. weakening the dollar (good for US exports, bad for other US interests?)
2. strengthening euro, stg and other currencies (negative effects on exports, some gainers)
3. stop the USA sopping up the world’s over-production – a major problem
and ??

Anyone have any useful ideas?

Author: Editors


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