US Treasury: No country or region is listed as a foreign exchange manipulator, and China's holdings of US debt are at a record high.

According to foreign media reports such as Reuters, on October 17, local time, the US Treasury Department issued a semi-annual foreign exchange report. According to the report, among the major trading partners, no country or region is a foreign exchange manipulator, and it is said that countries such as Germany, Japan, South Korea and Switzerland still remain on the US foreign exchange watch list. The United States believes that these countries have a huge trade surplus with the United States, a high current account surplus, or intervention in the foreign exchange market. QQ图片20171010110347.png On the same day, the US Treasury Department also announced the International Capital Flow Report (TIC). The report shows that in August 2017, the size of US Treasury bonds held by China increased by US$34.5 billion from the previous month to approximately US$1.2 trillion. So far, China’s holding of US debt has grown for seven consecutive months, and the total number of positions has reached a new high since July last year. 1508378343571806.png US Treasury's semi-annual foreign exchange report: no country or region is listed as a foreign exchange manipulative country. If a country is listed as a currency manipulator, the US government may prohibit the relevant countries from participating in the US procurement bidding and request the International Monetary Fund (IMF) to strengthen. Supervision and refusal to give private financing channels. In the latest report, the US Treasury removed the Taiwan region from the foreign exchange watch list. The US Treasury Department pointed out that Taiwan's Taiwan region has reduced foreign exchange intervention. However, the United States continues to urge the Taiwan region of China to increase the transparency of foreign exchange intervention and foreign reserves. The United States expressed concern about the “significant growth” in foreign exchange trading in India. Although the country is not on the watch list, the US Treasury Department said it will closely monitor India's monetary and macroeconomic policies. The report said that in the year to June this year, the bilateral trade surplus between India and the United States was $23 billion. The US Treasury Department said in the report: "China's currency has recently moved in a direction that can correct the imbalance between the US and bilateral trade. But on the basis of trade-weighted basis, the Chinese currency has become more competitive globally, due to the weakening of the US dollar." For the trade imbalance between China and the United States, US President Trump had a tough attitude during the campaign. And this attitude has softened in the past period of time. China’s holding of US debts hit a new high for three consecutive months. The largest “debtor” in the United States with the rise in US bond prices, China’s change in its holdings last year, the holdings of US Treasury bonds and the size of foreign reserves have risen and become the largest “debtor” in the United States. The position. At present, more than one-third of China's external reserve assets are US Treasury bonds . 1508378405858527.png For China's recent continuous increase in holdings, the People's Daily overseas report said that US debt is an important market for China. Whether it is holding or reducing its holdings, it is a normal investment operation. China will dynamically optimize according to various changes in the market. Adjust the operation. Experts analyzed that this year's increase is a reasonable change in the context of China's balance of payments surplus and external reserves. It is also an option to expand investment income. It is expected that the increase or decrease of US Treasury bonds in the future will remain an important operation for China's foreign exchange reserve management.

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