business

China's banks are bursting with dollars, and that's a worry

7 Comments
By Winni Zhou and Tom Westbrook

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© Thomson Reuters 2021.

©2024 GPlusMedia Inc.

7 Comments
Login to comment

The Yuen rising in value and the US Dollar falling in value are the best thing that could happen for the US trade balance.

6 ( +6 / -0 )

Concerned this rapid rise could unleash huge conversion of the deposits into yuan

China is a currency manipulator without Plaza Accord restraints. Japan was too “nice” to have let the yen strengthened 50% back in the day.

1 ( +3 / -2 )

As the Fed prints ever more dollars, how is this a surprise? The change in USD/CNY will not do much for the trade deficit as the dollar continues to depreciate against almost all other currencies. Feels like a big crisis coming

3 ( +3 / -0 )

The federal budget deficit varies widely, generally between 2-3% of GDP but can soar for various reasons, mostly war (it hit 26.9% in 1942). That of 2021 is expected to be 9.8% due to the effects of covid, both on lowered GDP and increased government spending, but is anticipated to rapidly fall to historic levels very soon as the economy soars and covid expenses vanish. As for China sitting on a pile of dollars: if they try to convert it to yuan, the yuan will soar, so they're forced to simply sit on it (or buy dollar-based assets such as property in America).

But, basically, they're sending the US stuff and the US is sending them paper. Americans seem to like that, and it could eventually benefit both sides as China's rapidly-aging society may reverse trade flows: China sends the dollars back to buy US goods so as to support its aged.

0 ( +0 / -0 )

I am here to help everyone and immediately. If the space becomes too small for all the unwanted dollars, feel free to send me a ship container full with them. lol

0 ( +1 / -1 )

It's very hard to transfer legitimate savings/money out of China, doing so nowadays makes your a Criminal since you need to seek assistance from the Black Marketeers...

0 ( +0 / -0 )

It's very hard to transfer legitimate savings/money out of China, doing so nowadays 

With a telephone app you can do it from anywhere in the world. Chinese owned businesses all over the world keep their earnings in Chinese banks transferring money in and out using phone apps.

0 ( +0 / -0 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites