The financial crisis changes the China-U.S. relationship
just the other day, it seems, China's leaders woke up and realized that they had a problem.
The low yield doesn't seem to bother them much, even now. But they are, apparently, worried about the fact that around 70 percent of those assets are dollar-denominated, so any future fall in the dollar would mean a big capital loss for China. Hence Zhou's proposal to move to a new reserve currency along the lines of the SDR's, or special drawing rights, in ...
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