dollar assets

"While a few years ago, maybe $75-$80 of every new $100 in reserves would go into dollar assets, now possibly only $65-$70 do, " he said.

A revaluation has costs. The huge stock of dollar assets held in the GCC would be worth less in terms of the home currencies.

China would lose money on its dollar assets, but it would lose still more if it delayed the move.

It should also stop piling up dollar assets to avoid losses asthe US currency weakens, he said.

What lends the dollar's decline an air of crisis is that the world's bloated currency reserves are crammed with depreciating dollar assets.

At least another quarter is in Treasury bonds and other US dollar assets.

That stockpile has caused headaches for Beijing, which holds most of it in U. S. government debt and other dollar assets.

Common sense and self-interest suggest that it was never particularly likely that China was dumping dollar assets.

Shifting to a currency peg does not mean a central bank would suddenly dump its dollar assets.

China, the biggest foreign holder of US Treasury bonds, has become increasingly vocal in its fears on the value of its dollar assets.

The news allayed concerns that Washington's largest creditor was moving away from investing in dollar assets.

In addition, there is the matter of China's massive reserve of dollar assets.

When foreigners actively buy dollar assets they force down the value of their currency against the dollar.

The continuing thirst for dollar assets, albeit of the right sort, suggests that America remains a magnet for global capital.

Many are still happily holding on to US dollar assets and US Treasury securities are still in great demand.

Establishing more bilateral transactions may also reduce the build-up of dollar assets and reduce reliance on the greenback.

Thus we have the Backing Ratio of US dollar assets over the Monetary Base, which we monitor daily.

Chinese banks and other financial institutions refused to acquire predictably depreciating dollar assets.

Xia pointed to examples of such diversification, saying China has added more Japanese government debt and other non-dollar assets.

Nintendo said it would make its first ever loss in the first half because of the impact of the yen's appreciation on its dollar assets.

A shift in their appetite for dollar assets could send the greenback tumbling and push up American interest rates.

It must not just replace its mountain of dollar assets with heaps of other currencies.

The US dollar assets backing the Monetary Base are managed in the most liquid form, in US dollar call deposits and US Treasury securities.

Meanwhile, China will movetodecrease foreign reserves and review excessive investments in dollar assets.

The proceeds from the issue of Exchange Fund Bills and Notes have over time been switched into US dollar assets.

For many years, European banks were not obliged to hold capital against their dollar assets or obligations.

Yet when China reduces its current account surplus (and diversifies from dollar assets) the effect will be felt in US Treasury markets.

SAFE has spent much of the past few years diversifying the types of dollar assets it holds.

One consequence is a huge accumulation of Asian official reserves in dollar assets.

The answer is, sadly, China has tried practically every trick known to get into non-dollar assets.

China also has a vast amount of reserves, holding almost $1. 2tn in US dollar assets, and has close to $2tn in total reserves.

If this sparked a fire sale of dollar assets, contagion could spread to US banks.

Official reserves are reckoned to be close to $2, 000bn , of which some 60 per cent are probably in dollar assets .

Yields on Treasuries have not risen and spreads on riskier dollar assets continue to shrink.

Indeed, China may have ceased purchasing official dollar assets altogether in 2010.

Analysts estimate around 60% of that is in U. S. dollar assets.

U. S. Treasury Secretary Timothy Geithner is reassuring the Chinese government that its huge holdings of dollar assets are safe.

However, as is currently no show that China has in the reduction of U. S. dollar assets.

After outbreak of American subprime crisis, management on dollar assets faces more severe test in China's foreign exchange reserves.

At the same time the intervention aims to shore up confidence among foreign investors in US dollar assets.

But the events have also underscored the paucity of serious alternatives China has to investing in Treasurys and other dollar assets.

There are not enough dollar assets to accommodate the demand for international reserves.

Central banks in Asia and oil-producing countries have so far been happy to buy dollar assets in order to hold down their own currencies.

If China could not buy dollar assets in bulk, it could not control its exchange rate.

The bulk of China's official reserves are held in low-risk U. S. dollar assets and that is where prudence dictates they should remain.

Yet dollar assets keep gaining, in part to feed this FX machine.

Foreigners own US dollar assets, of which US government bonds are the safest and most liquid, because they run current account surpluses.

Second, if China sells U. S. Treasury bonds, it must find some other safe foreign asset to buy, to replace the dollar assets it is selling.

The currency is also suffering because the credit mess is concentrated in dollar assets.

because of china ' s huge current account surplus , the proc has to sell renminbi and buy dollar assets to maintain the currency peg.

That is a serious concern to governments like China that invest heavily in US Treasury bonds and other dollar assets.

When the crisis hit last year, there were plenty of calls to reduce Chinese exposure and punish US profligacy by dumping dollar assets.

According to an HKMA spokesperson, the decrease in Hong Kong dollar assets was mainly due to fiscal drawdowns.

Propose to increase China's foreign currency reserve assets in euro, Japanese yen and Hong Kong dollar, besides to dilute US dollar assets.

The decrease in Hong Kong dollar assets was due mainly to a decrease in Exchange Fund Bills and Notes issued but not yet settled.

The increase in Hong Kong dollar assets was due mainly to an increase in bank borrowings, which was partly offset by fiscal drawdowns.

The increase in Hong Kong dollar assets reflected mainly the increase in market value of Hong Kong equities held by the Exchange Fund .

US Treasury Secretary Assures China Its Dollar Assets Are Safe

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