Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA
- China official reserves rose to 3.43tr USD in December, their highest level since November 2015 and up by 11% since their low reached in January 2017.
- The gradual increase in official reserves in recent years follow the sharp decline we saw in 2014/2016 when official reserves fell by approximately 1tr USD during that period (from a high of slightly above 4tr USD).
- Part of the fall in officials reserves came from the ‘drop’ in US Treasury holdings; China is still the second largest foreign holders of US Treasuries (after Japan, and excluding Fed) with a total of 1.065tr USD of Treasuries held in October 2021, but its holdings fell from over 1.3tr USD in the end of 2013.
- The ‘de-dollarization’ policy has been one of the priorities for China (as for Russia) since 2014 and has been trying to diversify its holdings in recent years and reduce its reliance on the greenback.
- For instance, the dollar’s share between Russia and China fell from 90% in 2015 to 45% in 2020; it was also reported that China/Russia conducted over 83% of their deals in Euro in the last four months of 2020.
- China has now adopted a more ‘forward looking’ investment strategy for the management of the country’s foreign exchange reserves, also increasing its stake in alternative investments through investment vehicles such as state-owned companies, banks and funds.
Source: Bloomberg/FRED/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok