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Thread: If China decreased her massive holdings of US dollars, what would happen?
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[quote=ZOEY,236963]According to US Treasury's statistics, China decreased about 5.8 billion US dollars of her holdings of US national bonds in April for the first time. China is one of the second largest holder of US national bonds outside US and she takes up 10 % of the circulating US national bonds. The first one is Japan. Till the end of April, Japan holds 614.8 billion US dollars. The report has aroused many people's attention. Does this suggest that China will sell her massive holdings of US dollars on a large scale? That is what people are concerned about. Although Chinese government emphasized several times that China would not decrease her holdings of US dollars, people are still sensitive about this issue and afraid that China will do so. If China made a decision to decrease her massive holdings of US dollars, what would happen? Is there anyone who has his or her understanding on this issue? Looking forward to hear your voice.[/quote]
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