Monday, July 27, 2015

More important than China’s gold announcement, U.S. banks scared of dollar dumping as buyers dry up

When China announced their long awaited gold reserve update last week, both the markets and analysts were mystified at just how low the reported reserves were, especially since many knew that China was producing over 2000 tons per year, and buying upwards of 1000 tons per month over the past two years.  And while the news did little to affect the dollar or change opinion on the future of China’s currency, something else came in under the radar that is scaring U.S. banks immensely.
China is dumping their dollar reserves, to the tune of over $500 billion in just the past five quarters.

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