Dominance of Dollar..? Sudden decision by Chinese investors..!!

Sowmiya Sriram
Dominance of Dollar..? Sudden decision by Chinese investors..!!
After the Russian-Ukraine war, the economy of the world is facing more and more problems, and China's economy is suffering more and more due to many problems such as the coronavirus, lockdown, and trade slowdown. At the same time, the excessive debt burden and frauds that have developed in China's real estate industry have greatly affected China's financial position. It is at this stage that Chinese investors have taken an important decision.
Due to restrictions, Xi Jinping's government is already struggling so much to revive the country's economy. The Chinese companies are stumbling and also manufacturing sector is still unable to catch up which is affecting the export as well.
As china nears a dreaded lockout, the trading market is heating up as crude oil prices drop. But the US's objections and China's stance on taiwan are having a big impact.
Instead of reinvesting in the market, Chinese investors are investing their surplus funds in safe financial schemes. For example, investors are investing in safe schemes, including buying the US dollar, without bringing their money into trade and market circulation.
China's largest investors have all invested in the country's leading banks' bonds and corporate bonds. As a result, against the Chinese currency the value of the dollar is likely to increase further.
Meanwhile, as interest rates have been raised due to China's currency has hit a near 20-year low against the US dollar. Bond investments provide extra protection and extra returns. There will be a economic slowdown or recession due to the practice of Chinese investors causing stagnation in the country's economy. There will be a major change in the financial market since the US central bank has raised interest rates.

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