China’s mysterious dollar dealings, DMI Journal: Asia takes off
Monday 24 August 2020 – Vol.11 Ed.35.1
Commentary: China’s mysterious dollar dealings
By Herbert Poenisch in Penang
There are two enigmas regarding China’s dollar business. The first is Chinese banks’ continued purchases of US treasuries and dollar lending and funding. The second is why these banks are seeking to become a major intermediary for dollar financing to emerging market economies through the Belt and Road initiative. At the same time, they have funded themselves in dollars. The BRI was expected to boost renminbi internationalisation. China’s plans to replace the dollar are not new, but its tactics are.
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DMI Journal: Asia takes off
Central bank digital currency activity is accelerating in Asia, where a range of digital payments and financial infrastructure projects is moving from desktop study to beta test implementation. This edition of the Digital Monetary Institute Journal takes the region as its inspiration with accounts of digital projects from both private and public sectors, stretching from China to Manila via Bangkok and Singapore. We also highlight a pair of projects from Europe.
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