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3 comment(s). Last comment by eimajz 2016-01-22 15:36


936 posts

Posted by NOBY > 2016-01-22 12:43 | Report Abuse

Just to put things into perspective, China and HK have one of the highest forex reserves in the world. China has over USD 3 trillion in reserves while HK has about 300 billion. Good luck to anyone trying to fight the central banks there.



63 posts

Posted by teareader > 2016-01-22 14:38 | Report Abuse

It is only a matter of time when the HKD unpegs. The forex reserves of China and HK may be high, but they will quickly be depleted should there be a stampede to USD. Currently, China is experiencing such a situation, draining their forex reserves. In order to have more control over their monetary reserves they are going to introduce electronic currency asap. Before the window finally shuts for good, I'm sure that a lot of mainland Chinese would like to store their liquid assets outside the country and in which safer currency than in USD? For those who argue that the dollar is unsafe because of the $18 to $19 trillion debts that it carries. It is still small when compared to the world's total debts of over $200 trillion. Moreover, the USD is still recognised as the world's reserve currency and is still the safe haven in any monetary crisis.


164 posts

Posted by eimajz > 2016-01-22 15:36 | Report Abuse

great write up! so informative!

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