• burningmatches
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    11 months ago

    I’m not sure that anything in this article is true. Has China “cut” its treasury holdings or have they declined in value? Or have some maturing treasuries not been reinvested in new treasuries? Probably a bit of both, but there’s no evidence that China has “cut” its ownership of treasuries. And it probably reinvests most of its maturing treasuries into other dollar bonds. China isn’t de-dollarising its foreign reserves to any significant extent and this likely isn’t a story.