Friday, January 8, 2016

China dumps $108 billion in reserves as the Far East economy uses dollars to protect currency

In overnight trading, China experienced an equities meltdown following their largest devaluation of the Yuan since August.  And at the heart of protecting the RMB in this trend of currency intervention is a new report on Jan. 7 which shows that the Far Eastern economy dumped $108 billion in dollar reserves in the month of December, dropping their reserve totals from $3.438 trillion to $3.330 trillion.
Much of this devaluation, equity declines, and dollar dumping are in response to the growing global recession that is not only hitting most emerging markets, but has daisy chained over to Europe and the U.S. where China is now the tail that wags the dog, and for the most part dictates the actions and reactions of the rest of the world that follows their market results.

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