China Has Lost Over $100 Billion In Dollar-Adjusted Terms On Its UST
Holdings In A Few Short Months
At the end of July, which was the most recent TIC data update, China owned $
847 billion in US Treasury bonds. Since then, the world's reserve currency,
which is what said Treasuries are denominated in, has lost 4.7%, or $40
billion in real terms. Yet an even more jarring observation is that from its
June highs, the USD has dropped 12.4%. Expressed in real terms from the
perspective of China's State Administration of Foreign Exchange, this means
that US's biggest creditor has lost over $100 billion when adjusted for the
purchasing power loss in the dollar.
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