- China “Discreetly” De-Dollarizing Amid Ongoing Trade Tensions
by Tyler Durden, https://www.zerohedge.com/
Ongoing trade conflicts have forced China to increase financial decoupling between the US. China wants to decrease its US exposure and diversify its reserves away from dollars, according to economists at Australia and New Zealand Banking Group (ANZ).
“The ongoing trade war and geopolitical issues have increased the risk of a financial decoupling between China and the US,” Raymond Yeung, Greater China chief economist, wrote in a recent note.
ANZ predicts Beijing will quickly diversify its foreign exchange reserves away from dollars.
“Although China still allocates a high share of its FX exchange reserves to the US dollar, estimated at around 59% as of June 2019, the pace of diversification into other currencies will likely quicken going forward,” Yeung said.