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This morning, the Association of Southeast Asian Nations (ASEAN), plus China, Japan and South Korea, have announced that they are moving forward with the Chiang Mai Initiative and forming a $120 billion foreign-currency reserve pool.
China already had, by far, the world's largest currency reserve holdings.
Sebastien Galy, senior currency strategist at BNP Paribas, believes it has even attained some currency reserve status.
China is also using its large pool of foreign currency reserves, which now total $356 billion, to buy more United States Treasury bonds.
Think about it: The major central banks' reserve managers control the largest pool of funds globally, suggesting that a sudden change in the weightings of currency reserves will have a massive impact on the foreign exchange markets.
Hard currency reserves are dwindling.
The depletion of currency reserves?
Foreign currency reserves have also plunged.
Officials said it was needed to protect foreign currency reserves.
Foreign currency reserves are dwindling, and prices are rising.
With large foreign currency reserves, they were lenders, not borrowers.
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