China’s banks are bursting with dollars, and that’s a worry

Reuters/Winni Zhou and Tom Westbrook

Repost from 6-4-2021

photgraph of rolled dollar and yuan on a newspaper background

“A mountain of dollars on deposit in China has grown so large that banks are struggling to loan the currency and traders say it poses a risk to official efforts to control a fast-rising yuan.”

USAGOLD note: The huge dollar overhang could translate to mass conversions back to the redback, according to this in-depth Reuters report, and a steep rally against the greenback. Gold could be a major beneficiary undersuch circumstances.

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