China is stockpiling cash instead of pumping it back into their economy and that’s pushing a decades-high dollar even further


Source: businessinsider.in businessinsider.in

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Chinese investors are parking excess liquidity in safe bets within the financial system, including the US dollar, instead of letting it flow to the real economy, according to Bloomberg . The country's top lenders and funds are putting cash in onshore policy bank bonds and high-grade corporate debt, per the report. Chinese cash is also heading for the US dollar, which is already hovering near 20-year highs, helped by higher rates. The cost of yuan funding has fallen for three months against the dollar in the offshore forward market, reflecting higher demand for the dollar, according to Bloomberg. Given the...