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China xiaokang.com reported on June 1 that the governments and central banks of Laos and Malaysia are increasing their holdings of China's RMB.
In the global foreign exchange reserves, the RMB reached US $336.1 billion by the end of 2021, increasing 3.7 times in five years. This is because if you only hold dollars, the losses at the time of the crash will be huge. If it is politically opposed to the United States, there is also a risk that dollar assets will be frozen. There is a trend to take the RMB of China with enhanced economic strength as a substitute for reducing its holdings of US dollars.
The proportion of RMB and foreign exchange is expanding
According to Nihon Keizai Shimbun, foreign exchange reserves refer to the assets reserved by the government and the central bank to cope with foreign exchange intervention and foreign debt repayment. International Monetary Fund (IMF) statistics show that by the end of 2021, foreign exchange reserves (including gold and other parts not allocated to national currencies) reached $12.9372 trillion, an increase of about 20% in five years.
According to the observation of the ratio of foreign exchange reserves allocated to each currency, the US dollar maintained a downward trend from the peak of 71.52% in 2001 to 58.81% by the end of 2021, a decrease of 6.5 percentage points in five years.
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