Foreign Central Banks dump record $109 Billion US Treasuries in March

[antonius123]

Many countries are dumping US treasuries now because they need USD.

It should be no matter for US, as FED could create USD and buy the dumped treasuries; besides I read FED promised to help world central banks liquidity with loan.

 

[Mista]

Many countries are dumping US treasuries now because they need USD.

That's right, many countries (especially Asian countries) are launching fiscal stimulus by raising money from the sale of their US treasuries.

From the OP itself:

Countries reliant on oil exports and smaller Asian economies have been selling U.S. debt, according to traders and market makers familiar with the transactions

Just Singapore alone has just launch more than S$50b worth of stimulus into the economy, and the DPM just said that we're prepared to do more if the situation worsens.

Along with the S$6.4 billion set aside for specific measures to deal with Covid-19 announced by Heng in February’s annual budget statement, the city state’s fiscal boost now stands at S$55 billion – about 11 per cent of GDP. In comparison, Japan is reportedly mulling a US$503 billion stimulus package worth about 10 per cent of its GDP. South Korea earlier in March unveiled measures worth some US$9.8 billion, about 0.6 per cent of its GDP.

Singapore’s 2020 budget was in itself extraordinary, with the virus package and other measures including cash handouts to citizens paving the way for the country’s biggest-ever deficit.

Singapore’s long-ruling People’s Action Party (PAP) last tapped on the country’s reserves – estimated to be around US$1 trillion – in 2009, amid the global financial crisis.

https://www.scmp.com/week-asia/heal...ingapore-unveils-us337-billion-stimulus-fight

SINGAPORE: The Government is ready to do more on the economic front if the COVID-19 outbreak in Singapore deteriorates, Deputy Prime Minister Heng Swee Keat said on Monday (Mar 30).

"I would like to reassure Singaporeans that we have the resources to do that if we need to," he said in response to a question about whether Singapore may need to dip into its reserves again to help cushion the economy from the impact of the global pandemic.

Malaysia:

KUALA LUMPUR - Malaysia on Friday (March 27) announced its largest economic stimulus package to date, with RM250 billion (S$83.6 billion) to be channelled towards supporting people and businesses grappling with the impact of the coronavirus pandemic.

https://www.straitstimes.com/asia/s...ulus-package-to-deal-with-coronavirus-fallout

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Oh wait no, the OP triumphantly said that the USD is collapsing because a certain 'foreign' central bank is selling off US treasuries.

Why is this relevant to CFE section? Because it's obvious which 'foreign' central bank is doing this

 

[Viet]

Many countries are dumping US treasuries now because they need USD.

It should be no matter for US, as FED could create USD and buy the dumped treasuries; besides I read FED promised to help world central banks liquidity with loan.

If I go to a bank and sell a dollar bond because I need dollar to buy a US car then I dump dollar? Weird chinese logic.

Don’t you realize the dollar remains in circulation just in another form?

 

[Mista]

Lol similar thread recommended by PDF, by @Raphael 6 years ago:

https://defence.pk/pdf/threads/russ...offset-by-belgium-buying-40-2-billion.314271/

 

[ZeEa5KPul]

If you are wrong, you owe me a crate of bananas fresh from Viet jungle.

Anywhere English is learned is a second language, like China, it is learned in its standard academic form. So we can't understand your colonial pidgin.

Good to see you back in rare form, brother.

The USD isn't going away because the world simply have no better alternative. Not the Euro, not the Yen, not the RMB.

There are plenty of better alternatives, even manure fertilizer is a better alternative than USD. It's just that "financial analyst" drones are completely devoid of imagination and in a cult that worships the USD. If Russia nuked the US out of existence tomorrow they'd still think the USD is the best investment.

No imagination, no intelligence, no understanding. Just robots.

 

[Han Patriot]

Good to see you back in rare form, brother.

There are plenty of better alternatives, even manure fertilizer is a better alternative than USD. It's just that "financial analyst" drones are completely devoid of imagination and in a cult that worships the USD. If Russia nuked the US out of existence tomorrow they'd still think the USD is the best investment.

No imagination, no intelligence, no understanding. Just robots.

We might be seeing the collapse of the US$ trading system.

 

[FairAndUnbiased]

Yes and no.
China certainly can increase exports because of cheap Yuan but there are other other players on the markets that can sell goods with cheaper prices like Vietnam.
Actually the exchange rate is very much like bananas trading.
The more people want bananas the more increase will the price.
The opposite is also true.
China goods are less in demand hence less people want Yuan. The exchange rate sinks.

lol at thinking that real world economics is anything like economics 101 from a textbook.

this is why Vietnam is still a banana republic.

 

[Viet]

lol at thinking that real world economics is anything like economics 101 from a textbook.

this is why Vietnam is still a banana republic.

You don’t like bananas?
I just looked up the number.
VND lost 1.5 percent, SG dollar 4.3 percent, Yuan 5.5 percent, Indonesia rupiad 15.7 percent. VND runs better than other. There must be a reason.

 

[Pepsi Cola]

You don’t like bananas?
I just looked up the number.
VND lost 1.5 percent, SG dollar 4.3 percent, Yuan 5.5 percent, Indonesia rupiad 15.7 percent. VND runs better than other. There must be a reason.

I like bananas...

 

[antonius123]

If I go to a bank and sell a dollar bond because I need dollar to buy a US car then I dump dollar? Weird chinese logic.

Don’t you realize the dollar remains in circulation just in another form?

Why dump dollar when you need dollar? it is your own weird logic due to ignorance.

The dollar goes in circulation but those countries are short in dollar because of capital outflow.

 

[Viet]

Why dump dollar when you need dollar? it is your own weird logic due to ignorance.

The dollar goes in circulation but those countries are short in dollar because of capital outflow.

I never use the word “dump”. It’s used by chinese media, stooges and other posters here including yourself.

Most countries hold US bonds and securities as national reserves. When they now sell it because they need dollar not because they “dump” the dollar because they are desperate.

 

[Chhatrapati]

They're using USD to save themselves. This is exactly why countries hoard USD in the first place. Guess the OP doesn't understand what this is about.

 

[Song Hong]

The U.S. debt to China is $1.07 trillion as of December 2019. 1 That's 16% of the $6.7 trillion in Treasury bills, notes, and bonds held by foreign countries. The rest of the $23 trillion national debt is owned by either the American people or by the U.S. government itself.

USD will not collapse simply because others sold few hundred billions or even China sold all her trillion of treasury holdings.

Trump stimulus is already USD 2 trillion.

But China does have nuclear option against USA, at the expense of bringing down China herself as well. This is another topic.

That's right, many countries (especially Asian countries) are launching fiscal stimulus by raising money from the sale of their US treasuries.

From the OP itself:


Just Singapore alone has just launch more than S$50b worth of stimulus into the economy, and the DPM just said that we're prepared to do more if the situation worsens.



https://www.scmp.com/week-asia/heal...ingapore-unveils-us337-billion-stimulus-fight



Malaysia:

https://www.straitstimes.com/asia/s...ulus-package-to-deal-with-coronavirus-fallout

/

Oh wait no, the OP triumphantly said that the USD is collapsing because a certain 'foreign' central bank is selling off US treasuries.

https://www.bloomberg.com/news/arti...banks-sell-109-billion-of-treasuries-in-march

Foreign official holdings of Treasuries stashed at the Federal Reserve fell $109 billion in March, the largest monthly drop on record, as international governments and central banks struggled with the economic fallout from the new coronavirus.

The decline showed up in the Fed’s weekly custody data, with the latest figure released Thursday showing a $24 billion drop in the week to April 1.

The sales amid the past month’s pandemic-fueled turmoil are a further signal of the global rush to raise U.S. dollars as the Fed’s recently expanded dollar swap lines are accessible to only 14 central banks. Countries reliant on oil exports and smaller Asian economies have been selling U.S. debt, according to traders and market makers familiar with the transactions, and central banks have been primarily offloading older, less-liquid Treasuries.

The Fed on Tuesday rolled out a temporary repurchase agreement facility that will allow a broader range of central banks to swap Treasuries for dollars, effective April 6.

“The fact that they can go to the Fed and repo these securities out for cash -- at a slightly punitive rate, but they can still do that -- should cap the potential price impact” in the U.S. government debt market, said Jon Hill, rates strategist at BMO Capital Markets.

The Fed stopped short of saying it wanted to prevent a snowball effect from the central-bank Treasuries selling, but said Tuesday that the new program will provide “an alternative temporary source of U.S. dollars other than sales of securities in the open market.” The statement didn’t specify if all central banks would be involved.

As fear swept through markets last month and fueled unprecedented volatility, liquidity -- the ability to trade without causing significant price moves -- deteriorated in Treasuries to its worst since the 2008 financial crisis. At the same time, the greenback surged as investors sought refuge in the world’s primary reserve currency. The Fed has acted to calm debt markets to avert knock-on economic effects, by announcing trillions of dollars of purchases of assets including Treasuries and mortgage-backed securities.

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Why is this relevant to CFE section? Because it's obvious which 'foreign' central bank is doing this

dump dump dump dump dump dump dump dump dump dump dump dump
faster the better
evacuate the sinking rotting ship now

 

[Beidou2020]

The U.S. debt to China is $1.07 trillion as of December 2019. 1 That's 16% of the $6.7 trillion in Treasury bills, notes, and bonds held by foreign countries. The rest of the $23 trillion national debt is owned by either the American people or by the U.S. government itself.

USD will not collapse simply because others sold few hundred billions or even China sold all her trillion of treasury holdings.

Trump stimulus is already USD 2 trillion.

But China does have nuclear option against USA, at the expense of bringing down China herself as well. This is another topic.

US Fed can print dollars and buy all their own bonds as long as they can get the rest of the world to use dollars for trade and investment payments. They basically export their inflation to the world.

China should accelerate using yuan for trade, investment and financing. Open domestic yuan-denominated bond market to foreigners so they can buy yuan-denominated government bonds after using yuan for trade and investment payments. Weakening the dollar payment system is the key to weakening the US empire.

 

[Song Hong]

Indeed China is doing a controlled demolition of dollar. USA should be taken down slowly under predictable outcome.

Sudden collapse of USA do not serve China interest as well.

But the hawks in Washington know time is not at their side. This is their last chance to strike.

Few years ago, USA military is supreme in South China Sea. Now USA navy will be live target there, without any chance of survival.

So bioweapons and other forms of hybrid war are their choice of the day.

US Fed can print dollars and buy all their own bonds as long as they can get the rest of the world to use dollars for trade and investment payments. They basically export their inflation to the world.

China should accelerate using yuan for trade, investment and financing. Open domestic yuan-denominated bond market to foreigners so they can buy yuan-denominated government bonds after using yuan for trade and investment payments. Weakening the dollar payment system is the key to weakening the US empire.