Wednesday, November 24, 2010

Changing reserves

China intrigues me. Today, I thought of finding information on China's growth in forex reserves. For the record, allocation and denomination of forex reserves are not known... what can be assumed is that most of it is in USD; some estimates peg it at 60%

I don't know what to make of this information but the rise, the absolute number and the strength of such a pool of another country's currency is unprecedented - emphasis on the word, unprecedented.
1USD = 6.65 Yuan as on 24th Nov. 2010

This growth cannot continue and if it cannot continue, something new and unprecedented ought to occur.

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