Breaking News
1. Joe Biden decides to pass on the torch to new generation      2. Wil Nifty Hold 24,200 on Monthly Expiry day      3. Kangana Ranaut’s Lok Sabha election from Mandi challenged      4. Early morning rain brings relief to Delhi      5. Nitish Kumar shouts at RJD MLA in Bihar Assembly, draws flak      6. Rouse Avenue Court extends judicial custody of Manish Sisodia and other accused till July 26      7. Supreme Court hearing NEET-UG issue      8. Singer Rahat Fateh Ali Khan arrested in Dubai: Reports      9. Assam CM Himanta Biswa Sarma meets PM Narendra Modi in Delhi      10. India needs to strike balance between import of goods and FDI inflows from China: CEA      11. INDIA bloc to convene meeting tomorrow      12. India's forex reserves surge to record high of $666.85 billion as of July 12      13. Hatred is in the veins of BJP: AAP MP Sanjay Singh      14. Union Home Minister Amit Shah chairs high level meeting with various Heads of Security and Law Enforcement Agencies      15. UP Vidhan Sabha session will begin from July 29      16. Indrani Mukerjea allowed 10-day abroad travel by special CBI court in Mumbai      17. Andhra Pradesh: Union Minister Nitin Gadkari visits Tirumala Venkateshwara Temple in Tirupati      18. Encounter breaks out in J-K's Doda      19. Moderate to heavy rain is expected in Mumbai, its suburbs today      20. Karnataka: Truck and tanker drivers stranded in Akola's Shirur due to landslide     

China has $3 Trillion in “Hidden” Currency Reserves: Economist Brad Setser Made Bold Claim

  • Posted on June 30, 2023
  • News
  • By Kanupreet Kaur
  • 284 Views
China is sitting on a $6 trillion cash hoard



China has been known for its massive foreign currency reserves, which have played a significant role in stabilizing its economy over the years. However, according to economist Brad Sester, the country’s actual currency reserves may be far larger than what meets the eye.

 

Setser claims that China has an additional $3 trillion in “hidden” currency reserves, which could have significant implications for the global financial dynamic. Setser believes that the overall amount of assets in foreign reserves in China could be around $6 trillion.

 

In a recent interview, Setser, a renowned economist, and expert on international economics, revealed his startling findings regarding China’s currency reserves.

 

He explained that while the country’s central bank, the People’s Bank of China (PBOC), officially reports its foreign exchange reserves at around $3.2 trillion, the true extent of China’s reserves is likely much higher.


China has been known for its massive foreign currency reserves, which have played a significant role in stabilizing its economy over the years.
According to Brad Setser, China is sitting on a $6 trillion cash hoard, half of which is "hidden," and this poses a new sort of risk to the world economy


Setser’s research indicates that China has been accumulating substantial amounts of foreign currency through various channels that are not fully reflected in the official data.

 

One significant avenue for this accumulation is through state-owned enterprises (SOEs). These entities, acting as intermediaries for the government, have been amassing foreign currency in large quantities, effectively boosting China’s overall reserves.

 

The economist believes that the Chinese government has deliberately kept these additional reserves hidden to exert greater control over the currency markets and maintain a competitive advantage in international trade. By concealing its true reserve levels. China can potentially manipulate its currency’s value and protect its export-oriented economy from fluctuations in global markets.


 

Setser claims that China has an additional $3 trillion in “hidden” currency reserves, which could have significant implications for the global financial dynamic
People’s Bank of China


The implications of China’s hidden reserves are vast and could impact global economic dynamics. The country’s ability to intervene in currency markets, thanks to its substantial reserves, can influence exchange rates, trade flows, and even global financial stability. It provides China with a significant advantage in managing its economic affairs, but it also raises concerns among its trading partners and financial analysts.

 

Setser’s revelations come at a time when tensions between China and other major economies have been on the rise. The United States and other countries have long accused China of unfair trade practices, including currency manipulation. The revelation of China’s hidden reserves could further these allegations and heighten calls for greater transparency in China’s economic policies.

 

It remains to be seen how China will respond to Setser’s claims and whether it will address the concerns raised by his research.

 

For more updates keep visiting our website www.topstoriesworld.com where we provide unbiased, true, and top stories of the world.

Author
No Image
Kanupreet Kaur

You May Also Like