Commentary: Renminbi ‘weaponisation’ talk overblown
By Mark Sobel in Washington
A media furore has flared over whether China will dump US Treasury holdings or ‘weaponise’ the renminbi. The debate is entertaining, but misses the mark. In spite of much rumour and conjecture, in the past China has consistently neither acted to ‘dump’ or ‘weaponise’ its Treasuries, nor shown interest in doing so. Instability is anathema to Chinese leaders and portfolio managers. It’s contrary to their self-interest. A sell-off could ratchet up US Treasury yields, imposing massive capital losses on Chinese official dollar holdings.
Read the full commentary on the website.
Monday 3 June, Vienna, 11:45 CET
Growth estimates for many central, eastern and southeastern European countries are low, raising doubts over the speed of convergence and concerns that these states could end up in a middle-income trap.
Organised jointly with the Austrian central bank, this seminar will address the key priorities and strategies for ensuring sustainable economic growth and development in CESEE.
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