Nov
24

Sino Slowing

chinaAs China’s economy slows, many are overly complacent and point to $4 trillion in foreign reserves that can always be spent to cushion any downturn. The problem is repatriating those funds would mean selling US Dollars and buying Chinese Yuan. That would raise the value of the Yuan and hurt exports. The primary reason the government is holding these massive foreign reserves is to weaken their currency to boost exports.

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