Russia Buys Quarter of World Yuan Reserves in Shift From Dollar
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Russia’s central bank dumped $101 billion in U.S. holdings from its huge reserves, shifting into euros and yuan last spring amid a new round of U.S. sanctions.
The central bank moved the equivalent of $44 billion each into the European and Chinese currencies in the second quarter, according to a report published on late Wednesday by the Bank of Russia, which discloses the data with a six-month lag. Another $21 billion was invested in the Japanese yen.
The Chinese currency accounted for 15 percent of total holdings at the last reading, up from 5 percent at the end of the first quarter, according to the report. That puts Russia’s yuan share at about ten times the average for global central banks, with its total holdings of the currency accounting for about a quarter of world reserves in yuan, according to International Monetary Fund data. Morgan Stanley estimated Russia was the main buyer of Chinese bonds last year.
January 10, 2019 at 8:32 PM #10942Ohio BarbarianModerator
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This is bound to hit the money markets hard sooner or later.
It is better to vote for what you want and not get it than to vote for what you don't want and get it.--Eugene Debs
Show me a man that gets rich by being a politician, and I'll show you a crook.--Harry Truman
January 12, 2019 at 5:21 PM #11639peacecorpsParticipant
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China owns the economic future unless the West is smart and tries to structure a world order that is fair to all countries. If the US tries to extract every bit of advantage out of the US dollar as the world’s currency, it will lose any and all leverage that it has.
The Big Lie: "Make the lie big, Make it simple, Keep saying it, And eventually they will believe it." AH.
"Arguments must therefore be crude, clear and forcible, and appeal to emotions and instincts, not the intellect." JG
National issues (slavery/racism, income inequality, pandemics and pathetic health care, weak unions) are not solved with more states' rights. Global problems (climate change, migration, trade, war, pandemics) are not solved with more nationalism.
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