The consensus seems to be that China's RMB devaluation and USD accumulation is purely due to economic necessity.
I don't know much about tradfi, but I have a sneaking suspicion that China might be devaluing the RMB to get it to parity with the HKD so they can flip the peg from USD to RMB.
They would probably need a heap of USD liquidity as a buffer, which would explain why they have suddenly started selling T bills etc and stockpiling USD.
I don't know anything and this isn't my field, but curious to know if this is within the realm of possibility.
gsovereignty
npub1my…psn5p
2023-09-29 17:17:11
Author Public Key
npub1mygerccwqpzyh9pvp6pv44rskv40zutkfs38t0hqhkvnwlhagp6s3psn5pPublished at
2023-09-29 17:17:11Event JSON
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"pubkey": "d91191e30e00444b942c0e82cad470b32af171764c2275bee0bd99377efd4075",
"created_at": 1696000631,
"kind": 1,
"tags": [],
"content": "The consensus seems to be that China's RMB devaluation and USD accumulation is purely due to economic necessity.\n\nI don't know much about tradfi, but I have a sneaking suspicion that China might be devaluing the RMB to get it to parity with the HKD so they can flip the peg from USD to RMB.\n\nThey would probably need a heap of USD liquidity as a buffer, which would explain why they have suddenly started selling T bills etc and stockpiling USD.\n\nI don't know anything and this isn't my field, but curious to know if this is within the realm of possibility.",
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}