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If balance-of-payments difficulties arise and persist, a nation's foreign exchange reserve runs low.
"Investing in American treasuries, as an important part of our foreign exchange reserve management, will continue," she said.
Well, there was a great deal of foreign exchange reserve growth among oil exporters and nations with persistent trade surpluses vis-a-vis the American economy.
On several occasions in the past Nigeria announced a huge foreign exchange reserve or surplus earnings from oil, only for citizens to be told a few years later that the money was "missing".
Talking of which, I was much struck at a recent Llewellyn Consulting seminar by a presentation on Brexit from John Nugée, who, when at the Bank of England, spent some time at the coal face of foreign exchange reserve management.
While few analysts believe that the dollar will be replaced as the world's dominant foreign exchange reserve anytime soon, the proposal suggests that China is preparing to assume a more influential role in the world.
Similar(39)
Foreign exchange reserves will soar.
The ECB has substantial foreign exchange reserves.
"We have enough foreign exchange reserves".
It has the world's largest foreign exchange reserves.
No country has ever accumulated larger foreign exchange reserves ($2.2 trillion).
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com