As the dollar plummets in value, China’s massive currency reserves have hit an all-time high.
China’s forex reserves rose $194 billion in Q3 to a record level of $2.65 trillion U.S. dollars according to China Daily.
Total reserves rose 16.5% year over year, and the higher they go, the more intense the pressure for a yuan revaluation will be.
Meanwhile, the dollar index (The dollar valued against a basket of currencies, ‘DXY’ on Bloomberg) is at 76.3, down from over 88 in June.
The dollar has thus lost 13% of its value since, which equates to some pretty hefty losses for China’s dollar holdings which comprise the largest share of its total forex reserves.