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Reserves by country -currency and gold. Is China dumping dollars and US treasuries quietly ?

If gold is not money, Why do top Banks of the world hold gold as a reserve? And why do countries keep gold as a reserve? Banks value gold above currency is proved as they do transactions among themselves keeping gold as collateral. (Ref: LCH.Clearnet to accept gold as collateral - FT.com http://www.ft.com/intl/cms/s/0/362f211e-f00b-11e0-bc9d-00144feab49a.html )

China ranks at more than no.30 in terms of per capita Gold reserves. However, It ranks no. 1 in terms of Forex holdings.

The U.S. posted a record cross-border investment outflow in June 2015 as China and Japan reduced their holdings of Treasuries and private investors abroad sold bonds and notes. The total net outflow of long-term U.S. securities and short-term funds such as bank transfers was $153.5 billion, after an inflow of $33.1 billion the previous month, the Treasury Department said in a report today. The June figure, and $40.8 billion in net selling of Treasury bonds and notes by private investors in June, were the largest on record, the Treasury said. (Ref:Boomberg: a1)

Investors are failing to factor in the very real risk of China scaling back on its U.S. government debt holdings, economist Stephen Roach told CNBC. He was formerly chairman of Morgan Stanley Asia and the firm’s chief economist for the bulk of his 30-year career at Morgan Stanley, heading up a highly regarded team of economists around the world.
"Everyone thinks interest rates are going to stay low in the U.S. because the Fed is in the control room... but the Chinese own about 11 percent of the Treasury market right now, and as they start to reduce their purchases of dollar-based assets... [this] will mean higher interest rates," he told CNBC Asia's Squawk Box. (Ref: CNBC: a2)


List of Per Capita Official Gold Holdings as in Nov 2010



Reserves including foreign exchange and gold shown on the site of the world bank:

Map: http://data.worldbank.org/indicator/FI.RES.TOTL.CD/countries/1W?display=map

List: http://data.worldbank.org/indicator/FI.RES.TOTL.CD/countries/1W?order=wbapi_data_value_2013%20wbapi_data_value%20wbapi_data_value-last&sort=desc&display=default


Country name 2010 2011 2012 2013
China 2,913,711,653,594 3,254,674,122,432 3,387,512,975,177 3,880,368,275,099
Japan 1,096,068,589,804 1,295,838,776,760 1,268,085,526,650 1,266,851,419,539
Saudi Arabia 459,313,156,024 556,570,991,484 673,739,617,131 737,796,506,890
Switzerland 270,479,800,683 330,585,901,719 531,302,253,382 536,235,292,234
Russian Federation 479,222,291,459 497,410,247,573 537,816,373,775 509,692,081,493
United States 488,928,295,253 537,267,272,428 574,268,090,541 448,508,967,142
Brazil 288,574,603,560 352,010,241,721 373,160,978,076 358,816,426,347
Korea, Rep. 292,143,480,407 306,934,543,258 327,724,416,297 345,694,101,316
Hong Kong SAR, China 268,743,168,500 285,398,502,318 317,362,272,184 311,209,660,738
India 300,480,145,804 298,739,485,811 300,425,518,088 298,092,483,487




References:

a1:
U.S. Investment Outflow Hits Record as China Cuts Holdings
 http://www.bloomberg.com/news/articles/2014-08-15/u-s-investment-outflow-reaches-record-as-china-sells-treasuries

a2:
Investors ignoring risk of China Treasury selling: Roach
http://www.cnbc.com/id/101142728

LCH.Clearnet to accept gold as collateral - FT.com http://www.ft.com/intl/cms/s/0/362f211e-f00b-11e0-bc9d-00144feab49a.html

List of Per Capita Official Gold Holdings (Nov 2010)

http://www.prudentinvestor.com/2010/11/list-of-per-capita-official-gold.html

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