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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: zzpat who wrote (378032)	7/23/2018 2:02:04 PM
From: Sun Tzu	Read Replies (2) \| Respond to of 544178

Yes I can. For 3 reasons: (1) as a leverage to threaten with, (2) so as not to spook the markets (i.e. any dumping will be masked), and (3) as part of the foreign currency war chest. This is not to say the risk is zero, but it is not a given that they will dump USD and stop using it. Unlike Trump, they don't make rash moves. The most likely negative action they will take is to spend their USD as investments in Africa and APAC. That way they are "dumping" their dollars without showing their hands.