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.
Never let your morals stop you from doing the right thing.--Isaac Asimov
The United States is also a one-party state but, with typical American extravagance, they have two of them.--Julius Nyerere
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.
When you think you have no choice but to start a war, think again. Wars promise to be quick, clean and decisive. Wars lie. They cause more problems than they solve, they just won't tell you that beforehand.
"If we are to have peace on earth, ... our loyalties must transcend our race, our tribe, our class, and our nation; and this means we must develop a world perspective."
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