Source: First Financial Daily
China should resume quickly reported to the mandatory exchange settlement
: A foreign exchange bureau officials have said foreign exchange reserves since December 2003 the premier decline since, has been low by 1.9 trillion dollars. Adding that this variety of suitable decline
SAFE would like to see.
This is actually nice for China do? Not necessarily! If important file with the other three groups: A, 8 ~ October China's foreign trade surplus totaled 93.2 billion U.S. dollars; Second,
8 ~ 10 月 foreign direct investment in China totaled 20.37 billion U.S. dollars; third, 8 ~ 10 months in China appearance the reserve to buy U.S. treasury bonds totaling 134.2 billion U.S. dollars, the rain-delayed
cold perspiration fly from the inventor - this an lying in the major risks of China's financial security,
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absolute foreign exchange reserves will be combined with these three diagrams mean? 8 ~ 10 months, China's foreign exchange reserves should have been a net diminish in cash flow $ 247 700 000 000
, whether it continues to account for the circumstance of imperative foreign exchange settlement poise of China's foreign reserve of about 2 trillion (19 056 +932 +203) 12.38% of dollars. In short, China's foreign exchange reserves
keen decline in cash flow.
we entire understand, cash flow is the lifeblood of the real affair. A business, its assets more, the scale is bigger, if the cash flow dried up there, it will
stop closure. Same is true of the central bank's foreign reserves operation, when the Asian fiscal crisis, Thailand, South Korea is for a colossal number of foreign dramatic departure from the requirements of the won hands
converted into foreign currency cash away, but the absence of sufficient foreign exchange between the two countries central bank cash payment,
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.
China has big foreign exchange reserves currently, but will not face the international honor of the financial crisis? Not! Decide whether to face payment crisis, not
assets you have, merely you need to exchange cash disbursement, you will realize how many cash out.
China must exchange the short-term foreign currency cash most size of some precautions. The elementary scale is equal to the number of international hot money into China, experts estimate is
3000 billion to among 1.5 trillion,
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- nought can not happen this time, just like the collapse of Wall Street is clearly more than a year ago, most people expected the worst.
China's foreign reserve in the measure of foreign exchange immediately has cash? This is an unknown, but evidently not a generous award to the figures. Chinese holdings of U.S. treasury bonds approached 652.9 billion U.S. dollars
a record lofty, the figure was 4 years antecedent, 180 billion U.S. dollars of 3.62 times; the same time, China has also bought into the U.S. subprime pledge crisis
country Then clear the euro and yen bonds bonds, China's foreign reserve of cash is not off.
to the U.S. Treasury for can be converted into cash assets? Not necessarily. Particular, the dollar actually alarming rate approaching naught, setting a historical log
records. Taking into account the United States extra than 11.3 trillion U.S. dollars in debt, more than 60 trillion dollar national debt, they still like riding a rocket-like heave in the hereafter tin see
obtain period, the U.S. Treasury when the avalanche I have a cost will not feel curious. But it is in China to sell U.S. bonds is the largest of its fuse blew. Jane
words,
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Lacoste Strap Trainers, the U.S. Treasury is promising to rupture alternatively even 90% 80% devaluation. We could no work back to how much cash.
So what have we increased cash stream means? Yes, namely is our current monthly trade additional and exotic straight investment. But in August to
, we have a record trade surplus increased because three consecutive months, it does not reflect the growth in our foreign exchange reserves, this is not fortuitous. Because, August 6 Nisshin
mended After exporting the company's foreign exchange account will be sold to the central bank, then alteration to the yuan. Modifications, this exchange can be
In additional words, the new foreign exchange regulations and self-ruin of our foreign reserve management an essential source of cash flow, but also is in effect a self-ruin of our fuel reserves of gold and strategic matters stone
power - a power in the U.S. hedge crash hazard is necessary!
If you ambition to put an end to China's foreign exchange reserves, cash flow crisis, then from now on, you should consider terminating the purchase of U.S. treasury bonds, nail the new immediately at the total assets of China's foreign exchange reserves management into cash flow management.