The Dollar Is Once Again The World's Problem' - Chinese State Media Urges 'De-Dollarization' Amid Fed's "Financial Looting"
https://www.zerohedge.com/geopolitical/ ... -amid-feds
Reserves have declined by about $1 trillion, or 7.8%, this year to $12 trillion, the biggest drop since 2003.
While the magnitude of the decline is extraordinary, the practice of using reserves to defend currencies isn’t anything new.
Most central banks still have enough fire power to keep interventions going, if they chose to.
Emerging-market exchange rates is posting only half the losses seen in developed countries.
Much of the pain is being felt in the UK and Europe, while countries like Brazil and Mexico are seeing their currencies lure investors with juicy yields.
The macro problems in Europe and the policy divergence in Japan is unlikely to clear up soon.
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