Posts Tagged as ‘Reserve Currencies’

October 27, 2008

Dollar-Bound

Even with a slowing economy and export markets slowing faster, China has a lot of trade surplus dollars to recycle. Its foreign-exchange reserves are in excess of $1 trillion and they sit mostly in U.S. dollar-denominated assets.
The American currency depreciated steadily for the past four years, though it has rallied recently. This may be a [...]