China Jan FX reserves fall below $3 trillion for first time in nearly 6 years

[shah1398]

If forex reserves have fallen then check that inventory of some precious metals would for sure have gone up. My wild guess is that China must have added tons of gold in January in its inventory as gold price was quite low around end December/start January and perfect for buying. Now the gold price have gone up and if China sells the same amount it bought then its already earning quite a big profit here.

 

[shadows888]

Simply put, I said china will not dump dollars what ever happens.

umm how about 50 years from now? or USA will be #1 forever?

 

[ito]

It's still very high, China should get ride of dollars before it collapse.

First, as of now dollar is still the trusted currency in the world. Second, more than $500 billion vanishing from Chinese foreign reserves in just one year is a matter of concern for Chinese economy.

 

[Keel]

easier said than done, that will make their exports expensive to US. Dollar is not going any where as long as china hoards them. If you entertain any idea of china dumping it, forget about it. Simply think about it, cant they use all the excess money to invest in China and get rid of poverty?

What are you talking about?

Our Jan exports to usa were up by almost 22% Y-o-Y
http://www.chinadailyasia.com/business/2017-02/10/content_15569384.html
and our trade surplus widened to US$51 bln. in the same mth
https://www.economiccalendar.com/chinas-trade-surplus-expands-to-51-4-billion-in-january-20170210/

Our pace of reduction of poverty is the most impressive in the world EVER
http://en.chinagate.cn/2015-06/24/content_35896607.htm
http://www.economist.com/news/leade...out-extreme-poverty-20-years-world-should-aim