Needs to always be on
Needs haptic feedback
5 karma · joined May 30, 2019
Needs to always be on
Needs haptic feedback
The key thing here isn't about the reserves, its how they they acquired them by creating a swap on USDCNY from Chinese exports from their reserves - effectively holding the Yuan from appreciation.
The other thing is for the trade deficit to decrease the reserves need to decrease too. The reserves, especially the way they were created using swaps give a proxy of USD held savings held but not yet poured back into the US (and hence creating a trade deficit).
This is all of course useless if the holder of those bonds is still China, but through another country such as Belgium with an overseas account - which they've done before.
Last checking GM's share price it was barely a composition of their revenue.