Asia Bizz: China Warns Depreciation On Its Huge Foreign Dollar Reserve
On Friday, economic giant China, showed a small glimpse of its huge dollar foreign reserve and has stated that it has a reserve that is seriously very big and that this giant reserves of foreign cash could face depreciation in the future. The total figure of China’s stockpile of foreign reserves is $2.45 trillion.
It has been described to hold a global average of: 65% of dollars, 26% of euros, 5% of Pounds and 3% of foreign yen. It has been a big global secret to the economic world, that what was the foreign reserves total with the Chinese government, and experts had believed that two thirds of their investments were done in dollars.
What has happened now is very shocking to the global economy, China stated that depreciation looks viable on the stockpile of foreign reserves in a developing country, and specially when a certain currency becomes very unstable, depreciation on it is a smart move. Because an unstable currency is a risk to its foreign assets, in this case its the dollar.
Experts from a Chinese magazine stated that “A diversified international currency system will be more conducive to international economic and financial stability”
