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Politics : Welcome to Slider's Dugout
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To: 8bits who wrote (4218)12/17/2006 12:34:55 PM
From: Zincman  Read Replies (1) of 50191
 
The only real solution to the poor return on China's reserves is to stop accumulating them. That requires policy reforms to reduce China's massive saving, which drives its current-account surplus, and a more flexible exchange-rate system. But before that happens, China's reserves could well hit $2 trillion

So, a doubling of FX reserves from here...? Not seeing a massive dumping of the dollar any time soon...

ZM
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