IT is getting harder for governments to buy United States Treasuries because the US's shrinking current-account gap is reducing supply of dollars overseas, a Chinese central bank official said yesterday.
The comments by Zhu Min, deputy governor of the People's Bank of China, referred to the overall situation globally, not specifically to China, the biggest foreign holder of US government bonds.
Chinese officials generally are very careful about commenting on the dollar and Treasuries, given that so much of its US$2.3 trillion reserves are tied to their value, and markets always watch any such comments closely for signs of any shift in how it manages its assets.
China's State Administration of Foreign Exchange reaffirmed this month that the dollar stands secure as the anchor of the currency reserves it manages, even as the country seeks to diversify its investments.
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2 comments:
Nothing but lies. They have doubled the amount of currency in circulation. The Fed is buying the Treasuries and eveyone else knows it.
When the Fed buys Treasuries it is an act of "monetizing the debt".
Eventually they will be sold and the value of the dollar will plummet. At that point the massive inflation bubble will burst.
8:40
Hear here! We are in deep trouble.
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