Tuesday, December 22, 2015

Everyone rushing to dump U.S. dollars as October sees decline of almost $150 billion

A new report came out on Dec. 15 from the U.S. Treasury Department showing the overall foreign holdings of U.S. Treasuries and dollar based reserve instruments.  And for the month of October, nearly $150 billion was divested from global accounts, and marks the biggest dumping of dollars in any month of this year.
A combination of the acceptance and expansion of the Yuan currency, and the need for nations to protect their economies by dissolving their reserves are primarily to account for this dollar dumping.  And it is expected that when we get to see November and December’s numbers by the Treasury Department, the selloff will be much greater as more options become available for nations to transact outside the reserve currency.

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