Matt Clinch discussed on 8-28-15 on CNBC China’s acceleration in the selling of its dollar-denominated debt reserves.
China is the biggest holder of reserve assets in the world, holding a combination of bonds, currencies and commodities like gold. It held $1,271 billion in U.S. Treasurys at the end of June, according to data from the Treasury Department.
Rabobank argued that Beijing’s selling of Treasurys probably reflected capital flight out of China, which would push the yuan down. This in turn would reflect concern over the Chinese economy which would “very probably result in falling inflation expectations globally.”
http://www.cnbc.com/2015/08/28/china-dumping-treasurys-heres-what-you-must-know.html
About me: Sean McClure is a former Senior Advisor at the White House. Sean is currently the Suspension and Debarment Advisor to the Department of the Treasury and with over 15 years of experience working at the White House, Department of the Treasury, USAID, and Department of State. He has traveled extensively to 35 countries in Africa, Asia, Latin America and Europe.
