If China try to sell it USD reserve in the Currency market will the USD depreciate more and more?
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This entry was posted on Tuesday, March 18th, 2008 at 11:36 am and is filed under Currency Trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
March 18th, 2008 at 11:36 am
Yup that would happen. It's interesting. Would China rather devalue the U.S. dollar and buy U.S. companies or prop it up in order to encourage its own domestic export market? Who knows what the motives are. My guess is they are going to be more diversified in the future instead of buying so many dollars.
March 18th, 2008 at 11:36 am
Of course, basic economics re: supply vs demand. More supply of any material item lowers demand and subsequently lowers price