With the continuous appreciation of the US dollar and the suppression of the exchange rate, China's foreign exchange reserves have attracted people's attention for three consecutive months. However, the latest data shows that China's foreign exchange reserves have increased by nearly 500 billion yuan in just one month, and foreign reserves have soared by 500 billion yuanThe news came as a surprise. At the same time, the dollar index fell sharply in November after a streak, which gave people something new to think about. The increase in foreign exchange reserves coincided with the massive sell-off of US bonds, not **. This move has led to a significant reduction in US bond holdings, and the share of US bonds in foreign exchange reserves has dropped significantly. In addition, China has also chosen to buy ** as an investment reserve, and the purchase volume of ** has been increasing, which also indicates that we have a higher and higher demand for **, which also affects the exchange rate of the yuan.
China's foreign exchange reserves have surged by 500 billion yuan in the past month, despite the persistence of the dollar. This means that the scale of our external reserves has begun to pick up and we have regained our strength. At the same time, we are actively improving the quality of our reserve assets.
There are deep considerations behind this decision. **As a world currency reserve, it has the characteristics of stable value, resistance to inflation, and preservation and appreciation of value. Especially in the context of increased global economic uncertainty, ** is considered the first choice for safe-haven assets. Therefore, the purchase of ** is not only an effective means of risk control, but also a value-added guarantee for foreign exchange reserves.
China's domestic market demand for ** has been very strong, especially in recent years, people's enthusiasm for investment in ** has been rising. In order to meet the demand of the domestic market, China's ** reserves have been increasing over the past 12 months. This is also our long-term optimism about the market, and we believe that the value of the market will continue to increase in the future. Buying ** is not only a preservation and appreciation of one's own wealth, but also a reflection of the improvement of national strength.
Unlike previous years, despite the increase in China's foreign exchange reserves, we have opted for a massive sell-off of US bonds rather than continuing**. This strategy once aroused doubts and concerns from the outside world. However, this decision proved to have an extraordinary effect.
In the past, as our foreign exchange reserves increased, we bought large quantities of U.S. bonds to stabilize and increase our assets. At the maximum, we held almost 1$4 trillion in U.S. debt. However, the situation has changed completely. Despite the increase in foreign exchange reserves, we continue to ** US bonds. At present, our holdings of U.S. debt have been reduced to $780 billion, a decrease of nearly $600 billion from the peak. This shows our determination to significantly reduce the US debt.
* The size of US Treasuries is getting larger, which also helps the US dollar index**. Over the past year, we have continued to break through one round number mark after another, and now we have fallen below the $800 billion mark. This means that we are not only reducing our dependence on the US dollar. Such a move not only helps to reduce risk, but also increases earnings through other foreign exchange assets.
At the same time, it is likely that the increase in China's foreign exchange reserves will not be financed by the US dollar, but by other foreign exchange assets. At present, the share of the US dollar in global foreign exchange reserves is gradually decreasing. Over the past 20 years, the dollar's share of foreign exchange reserves has fallen by about 20 percentage points. For global central banks, they have adjusted the asset structure of foreign exchange reserves, reduced dependence on the US dollar, and chosen a diversified path.
As can be seen, the performance of the US dollar in the share of international payments does not fully reflect the actual situation. As the United States pushes some countries out of the payment system from time to time, the monopoly of the system is gradually crumbling, and a lot of payment data is not reflected in this statistics. Therefore, the ostensible increase in the dollar's share of payments does not mask the trend of the decline of the dollar's position.
As China aggressively sells US bonds and buys**, demand for the yuan is getting stronger. This is also directly reflected in the exchange rate of the renminbi against the US dollar, and the offshore exchange rate in November suddenly ** 1961 points. It is expected that with the Fed's decision to raise interest rates this week, the US dollar will continue**, while the yuan is expected to continue**. This series of measures shows that China is actively adjusting the structure of foreign exchange reserves to promote the internationalization of the renminbi.
This article focuses on the recent surge in China's foreign exchange reserves and the aggressive buying** and aggressive sell-off of US bonds, and analyzes the impact of these measures on the position of the US dollar and the trend of the RMB exchange rate. By using the market as an investment reserve, China has shown its optimism about the market. At the same time, by ** US bonds and diversified foreign exchange assets, China has not only reduced the risk of foreign exchange reserves, but also reduced its dependence on the US dollar. With the challenge of the US dollar's monopoly, the international status of the RMB is expected to be further enhanced. This series of measures shows that China is actively adjusting the structure of foreign exchange reserves to enhance its economic strength and international influence.