What if China has a $6 trillion pile of cash and nobody outside really knew what they had? Well there are now claims that China is sitting on a whopping $6 trillion pile of money, half of which is “hidden“. This presents a new kind of risk to the global economy. Let’s unpack this. So, what exactly are these “hidden“ reserves? Well, a lot of China’s foreign-exchange reserves don’t show up in the official books of the People’s Bank of China. Instead, they’re lurking in the shadows, appearing as “shadow reserves“ among the assets of entities such as state commercial lenders and policy banks. Interestingly, while the official reserves have stayed relatively stagnant over recent years, these “hidden“ reserves have likely grown alongside China’s export surplus
#china #BRICS #currency
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