Summary:
- China is becoming a significant enough force in the world that officials at the Federal Reserve are going to have to pay more attention to world currency markets.
- The US/China economic and financial relationship is so important to China that the People’s Bank of China has reduced its currency reserves by $470 billion since last August.
- Importance? Since the Federal Reserve announced it was stopping its quantitative easing in the summer of 2014, the PBoC has seen its currency reserve drop by around $800 billion.
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