China prepared to bring down the dollar

94

Photo: Aly Song / Reuters

China is going to get rid of US national debt of three billion dollars, writes The Wall Street Journal.

According to the newspaper, the government has already instructed national and world investbanka. They will need to collect the necessary amount of securities and offer them to new buyers.

For sale will be offered to U.S. Treasury bonds with maturities of 5, 10 and 30 years.

This will be the second sale China American securities in 2018 and only the third since 2004. In July, Beijing has already got rid of the bonds at 7.7 billion dollars.

As writes the edition, if China will manage to find buyers, it will happen against the background of a trade war with the United States and investors to move into the American economy. Thus, the price of bonds, which in recent months has grown, reduced, and the yield will rise. Received dollars China will likely also sell, which will lead to the depreciation of the U.S. currency.

Nevertheless, China remains the largest foreign investor in US debt. At the moment it owns the securities of 1.17 trillion dollars.

Video, photo All from Russia.

LEAVE A REPLY

Please enter your comment!
Please enter your name here