kotika98

Russia, China Gang Up on the Dollar

Chinese could make their own currency THE reserve currency if they allowed it to be freely convertible, and at a market determined floating rate. The silliness of the whole situation is that they actually think they dont want the US dollar to lose value, but i dont quite see why they want to keep accumulating even more of the crap. After the amount climbed beyond 1T and heading to 2T can you really call it a reserve? Reserve is something you keep to be able to spend on a rainy day, but this 2T is just sitting on the balance sheet of the chinese central bank and the government cannot actually go ahead and spend it even if it wanted to.