Why China dont keep its reserves in its own currency ?

[hahaho]

Just cant understand it.

People say the US dollar is worthless, toilet paper and junk.
Then why chase the dollar and buy it, if they have no faith
in that junk currency ?

Why China keep most of its money reserves in US dollars.
Why not in its own currency Remimbi ?

Is it coz, China have no faith in its own money or is it
coz it feel the Yankee dollar is safer than its own money ?

actions speak louder than words.

 

[wikiphile]

Just cant understand it.

People say the US dollar is worthless, toilet paper and junk.
Then why chase the dollar and buy it, if they have no faith
in that junk currency ?

Why China keep most of its money reserves in US dollars.
Why not in its own currency Remimbi ?

Is it coz, China have no faith in its own money or is it
coz it feel the Yankee dollar is safer than its own money ?

actions speak louder than words.

Im no economist but are you trying to say that the PRCs have no faith in their own money? Anyhow the US dollar is not worthless and if you believe in that you can start swiping your ass with the USD. The only problem is it is getting weaker by the day due to combination of many factors

The USD is still the premier choice of currency for trading across nations. What the PRCs did is inevitable by the way, they amassed about 2.4 Trillion worth of USD and debts over the past few decades because nothing was as recognised and liquid like the USD.

http://en.wikipedia.org/wiki/List_of_countries_by_foreign_exchange_reserves

 

[singveld]

keep own currency? is that also call printing money? so if china currency collapse, no one except their paper, how are they going to import fuels/minerals/steel ?

 

[Ramseth]

Reserves are either in gold or in foreign currencies. For example, if PRC is hit by a major financial crisis or is invaded on a scale like what Japan did in WW2, RMB is likely to become worthless without gold or foreign reserves backing.

 

[hahaho]

Im no economist but are you trying to say that the PRCs have no faith in their own money? Anyhow the US dollar is not worthless and if you believe in that you can start swiping your ass with the USD. The only problem is it is getting weaker by the day due to combination of many factors

The USD is still the premier choice of currency for trading across nations. What the PRCs did is inevitable by the way, they amassed about 2.4 Trillion worth of USD and debts over the past few decades because nothing was as recognised and liquid like the USD.

http://en.wikipedia.org/wiki/List_of_countries_by_foreign_exchange_reserves

2.4 trillion. They saved it over the decades. All the more
strange, why they push all that money to USA, when they have
their own banks , stock markets and a large economy.
even now they are doing it.

Why don't they Walk the Talk ?
Not only China, other countries also chase the dollar while
cursing how worthless the dollar is.

does it mean that a worthless toilet paper US dollar is still
more value than their own money ? That seem to be the logic
on the face of their actions.

 

[jimmyfallon]

Just cant understand it.

People say the US dollar is worthless, toilet paper and junk.
Then why chase the dollar and buy it, if they have no faith
in that junk currency ?

Why China keep most of its money reserves in US dollars.
Why not in its own currency Remimbi ?

Is it coz, China have no faith in its own money or is it
coz it feel the Yankee dollar is safer than its own money ?

actions speak louder than words.

How can anyone be so stupid is beyond me....