Chinese Foreign Exchange Reserves, Policy Choices, and the U.S. Economy

Christopher Neely

Review, 2017, vol. 99, issue 2

Abstract: China is both a major trading partner of the United States and the largest official holder of U.S. assets in the world. The value of Chinese foreign exchange reserves peaked at just over $4 trillion in June 2014 but has since declined to $3.19 trillion (as of August 2016). This very large decline in foreign exchange reserves is unprecedented, and some analysts have speculated that continued sales of these (mostly U.S.) assets might significantly impact the U.S. and global economies. This article explains the reasons for this large decline in official assets, China?s available policy choices, and how these choices could affect the U.S. economy.

JEL-codes: E52 E58 F3 F32 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://files.stlouisfed.org/files/htdocs/publicat ... -the-u-s-economy.pdf Full text (application/pdf)
https://doi.org/10.20955/r.2017.207-231 https://doi.org/10.20955/r.2017.207-231 (text/html)

Related works:
Working Paper: Chinese Foreign Exchange Reserves, Policy Choices and the U.S. Economy (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedlrv:00081

DOI: 10.20955/r.2017.207-231

Access Statistics for this article

Review is currently edited by Juan M. Sanchez

More articles in Review from Federal Reserve Bank of St. Louis Contact information at EDIRC.
Bibliographic data for series maintained by Scott St. Louis (scott.stlouis@stls.frb.org).