US Debt Security Is Doubtful &Nbsp; China'S Huge Reduction Is In Recent Record.

U.S.A

Analysts believe that a record reduction in scale reflects the market's concern about the security of the US debt and the depreciation of the US dollar.

How to protect the safety of foreign exchange reserves and get out of the "dollar trap" as soon as possible has become an important consideration of decision-making departments.

The largest reduction in recent years

According to the available data, the reduction of US $36 billion 500 million in August is the largest monthly reduction in US Treasury bonds in recent years.

The last massive monthly reduction occurred in June 2009, when China reduced its holdings of US Treasury bonds.

The world famous rating agency Standard Pool Co lowered the US long-term sovereign credit rating in August 6th. This is the first time that the US sovereign credit rating has been downgraded. The security of US Treasury bonds has been questioned by the market, and the US dollar has gone out of the market.

The market is increasingly worried about the "dollar trap".

Although it is a normal market operation, like the last reduction of more than 25 billion dollars, the record sharp reduction has once again aroused widespread concern in the market. Many economists believe that the market is increasingly worried about the "dollar trap".

"Over the past 20 years, China has kept its surplus in current account and capital account almost without interruption, which has inevitably led to the accumulation of foreign exchange reserves."

Yu Yongding, economist, pointed out that for a long time, China had to further purchase US dollar assets while the risk of the depreciation of the US dollar increased.

Statistics show that China's reduction in US Treasury bonds amounted to US $25 billion 100 million in June 2009, and its background is inseparable from the phased weakness of the US dollar.

Since 2009, the US dollar index has been rapidly dropping from 85 points, and has fallen to 75 points at the end of the year, bringing the loss of investors' dollar assets.