Introduction: Recent ChinaForexThe unexpected increase in reserves has sparked international concern. The United States had hoped to see ChinaForexReserves increase, because it means that China will buy moreU.S. Treasuries。Today, however, the situation has changed. ChineseForexReserves increase, and on a large scale**U.S. Treasuriesand also purchased a large number of them。These moves have not only changed China's foreign trade environment, but also put some pressure on the United States.
ChinaForexThe latest data shows that reserves have increased by $70.6 billion, equivalent to 500 billion yuan, in just one monthRMB。This means that China has successfully reversedForexReserves for three consecutive months**. The increase came as a surprise to many and sparked speculation.
ChinaForexThe fact that reserves have increased so rapidly is that our country has recently sold off a large amountU.S. Treasuriesand purchased othersForexAsset. And before, ChinaForexWhen there is a massive increase in reserves, it is mainly through acquisitionsU.S. Treasuriesrealized, led to oursU.S. TreasuriesThe holdings are close to 1$4 trillion. However, now ChinaForexThe growth of reserves is no longer accompanied by purchasesU.S. Treasuriesacts.
Despite ChinaForexReserves have increased, but we continue to **U.S. Treasuries。Currently, we holdU.S. TreasuriesIt has been reduced to $780 billion, down nearly $600 billion from its peak. This indicates China**U.S. TreasuriesThe scale is getting bigger and bigger, and the determination is getting stronger and stronger.
in the sell-offU.S. TreasuriesAt the same time, China used some of the funds for purchases。In the past 12 months, China'sReserves are increasing every month. This move sends a clear signal that China is doing itBuying strategy, and planning to continue.
As a safe-haven asset, it has the characteristics of maintaining and increasing value. China buysIt's not just an increaseForexOne way to reserve is also to raiseRMBAn important means of internationalization. With the purchase of ChinaThe scale of the building continues to growRMBCredit support in the international market is also getting stronger and stronger. This is directly reflected in:RMBIn terms of the exchange rate against the US dollar, the offshore exchange rate has recently increased by 1961 points.
* The increase in reserves is not only a signal from China to the outside world, but also a challenge to the hegemony of the US dollar. Over the past 20 years, the dollar has been around the worldForexThe share of reserves has fallen by almost 20 percentage points. This suggests that global central banks are becoming less dependent on the US dollar. And China, as the world's second largest economy, carries outThe move to buy further weakened the position of the dollar.
ChinaForexThe increase in reserves as well as the sell-offU.S. TreasuriesThe behavior has put a certain amount of pressure on the United States. In the past, the U.S. wanted to see China buy moreU.S. Treasuriesin order to maintain their own interests and position. Today, however, China continuesU.S. TreasuriesAt the same time, also through the purchaseto increase reserves.
This makes it impossible for the United States to continue to peddle more to ChinaU.S. Treasuries。At the same time, the hegemony of the dollar was met by ChinaThe challenge of increasing reserves, the United States is uneasy about it. While the US dollar still dominates the global payment system, this is changing. As the United States excludes some countries from the payment system, the monopoly of the dollar is gradually shaking.
Summary: ChinaForexThe increase in reserves as well as the sell-offU.S. Treasuries, purchaseof the move to the internationalFinanceThe market has had a big impact. This is not only China's safeguarding and promotion of national interestsRMBInitiatives of international influence are also for the interests of the United States and the worldFinanceThe pattern has caused a certain shock. As China continues to growBuying strength,RMBThe international status is expected to improve, and the hegemony of the US dollar may be further challenged. In the context of globalization, countries should actively respond to this change and seek more equitable, stable and sustainable developmentfinancial system