China Says It Has Over A Trillion Reasons To Value The US Dollar

China has said that it really values the US dollar and that it was easing plans to sell off its vast dollar reserves.

Well China has over a trillion reasons to value the US Dollar as they hold 1.2 trillion dollars in their vast foreign currency reserves.

An official Xinhua news agency quoted a central bank official:

“US dollar assets, including US government bonds, are an important component of China’s forex investment repertory due to the dollar’s important position in the world currency system, and the capacity and liquidity of the US financial system. China is a responsible investor in world financial markets. Our objectives in managing our forex reserves are stability, liquidity and investment returns and we have a long-term and strategic view,” said the official with the People’s Bank of China.

Market Analyst Sam Kirtley of The Gold Prices Newsletter said that despite these statements, China would continue to diversify its dollar reserves: “China has over a trillion US dollars that are doing nothing but sitting there and losing value as the US dollar declines. China needs to move out of dollars as much as possible and into assets of real value such as gold and silver. As China buys gold, silver and other assests with their fiat dollars, it will push the price up the new highs, which is why we think now is a good time to invest in gold and gold stocks.”

Many people think that a lower dollar will be good for the USA as then their exports will seem cheaper in other countries.

What do you think?

Is China going to keep its US dollar reserves?

Or is China going to use its US dollar reserves to buy assets like gold bullion?

Source

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