Sunday, February 7, 2016
China's Currency reserves plunged
The article talks of how despite being the largest foreign currency holder in the world, the declining rate of its domestic currency is causing worry for China.
To stabilize the situation, the article reads, China is selling Dollars to buy more Yuan (its own currency), which seems very odd to me.
I am guessing the decline in foreign currency reserves is also probably because of general slow growth of China's economy in the past financial year.
http://www.bbc.com/news/business-35516054
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Your article links well to mine. My article was about how lower prices of chinese imports are actually having an effect on the labor market in the US. The chinese are currently running a trade surplus and are benifiting from the lower price of their currency due to the fact that it helps increase their exports to other countries. So, while a weaker currency may look like a negative, the chinese probably see it as a positive.
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