China is building up its 'shadow reserves'....>

CHINA: China is building up its 'shadow reserves' to counter its reliance on the

US dollar (CNBC)

- China is heavily exposed to the U.S. dollar, but now, with the risk of

"decoupling," Beijing is silently diversifying its reserves to reduce its

dependence on the world's largest reserve currency, analysts say.

- Ongoing trade tensions with the U.S. has "increased the risk of a financial

decoupling" between the two largest economies, ANZ Research said in a recent

report. The White House reportedly considered some curbs on U.S. investments in

China such as delisting Chinese stocks in the U.S.

- Beijing will therefore manage its risk by diversifying its foreign exchange

reserves into other currencies, ANZ predicted, as well as build up its "shadow

reserves."

- Link: https://tinyurl.com/vk73uo3