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China dumps US Treasuries by $101,900,000,000 in 12 months as Fed chief dismisses 'imminent demise' of US dollar
New figures show China sold $101.9 billion in US Treasury securities over the past 12 months.
The Treasury Department reports that China reduced its assets from $869.3 billion in March last year to $767.4 billion in March this year.
Chinese investment has fallen steadily from its all-time high of $1.31 trillion, which was set in November 2013.
The news comes as China is moving away from the dollar in cross-border trade and the global economic alliance known as BRICS is considering creating a digital rival to the US dollar.
These developments do not go unnoticed by the Federal Reserve.
At a recent conference on the global importance of the U.S. dollar, Fed Chairman Christopher Waller said the dollar's collapse was overblown but acknowledged that the role of the world's reserve currency is changing.
“For some time there have been comments predicting that the dollar is doomed to decline—a potentially inevitable decline...
The role of the United States in the global economy is changing, and finance is constantly changing. The dollar remains by far the most widely used currency by a number of indicators.”
Waller points to America's use of foreign sanctions as a factor in the dollar's future dominance.
“If these sanctions and policies are long-term, the changing landscape of cross-border payments, including the rapid growth of digital currencies, could also pose challenges to the dominance of the US dollar.”
Back in February, Waller said that despite the challenges, countries have "few practical alternatives to the dollar," noting that "in times of global stress, the world looks toward the dollar, not away from it."
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