China runs massive trade surpluses with North America and Europe. Those markets pay in US Dollars or in Euro. Every day China earns about $2.7 billion USD ...
I think he's correct that China wants to move USD and Euro into Chinese banks and then use these assets to collateralize new loans in any currency, and create new economic growth elsewhere. It makes sense to start moving assets out before things deteriorate to the point when it's no longer possible to do. This way they can potentially use these assets to kick start a new BRICS trading system.
I think he's correct that China wants to move USD and Euro into Chinese banks and then use these assets to collateralize new loans in any currency, and create new economic growth elsewhere. It makes sense to start moving assets out before things deteriorate to the point when it's no longer possible to do. This way they can potentially use these assets to kick start a new BRICS trading system.