China may consider reducing US bond purchases, but its options are limited THREAD #EEUU
The trade war, exacerbated by this week's tariffs, poses significant challenges for China. Source: Grok. The measure seeks to prevent the yuan from falling, given the pressures from the 104% tariffs.
The Chinese yuan has lost about 1.3% so far this month. China has taken steps to counter pressure on its currency and reduce its dependence on the US dollar, amid an escalating trade war with the United States.
The People's Bank of China (PBOC) instructed the country's major state-owned banks this week to reduce their dollar purchases, sources with direct knowledge of the matter told Reuters.
Let me know your opinion here 👇👇👇