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August 2010

Won’t dump US Treasuries : China

By Raman Jokhakar
Tarunkumar G. Singhal
Chartered Accountants
Reading Time 1 mins

New Page 1

56 Won’t dump US Treasuries : China

China ruled out the ‘nuclear’ option of dumping its vast
holdings of US Treasury securities but called on Washington to be a responsible
guardian of the dollar.

In the third in a series of statements explaining its work to
the Chinese public, the State Administration of Foreign Exchange (SAFE) sought
to allay concerns in the outside world that arise whenever Beijing shifts its
holdings of US government debt.

In a series of questions and answers posted on its website,
www.safe.gov.cn, SAFE asked rhetorically whether China would use its $ 2.45
trillion stockpile of reserves, the world’s largest, as a ‘nuclear weapon’. SAFE
said such concerns were completely unwarranted.

(Source : The Times of India, dated 8-7-2010)

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