Article: China has sold a record amount of US debt securities
Source: https://ru.investing.com/news/economy/article-2421638
Context:
Investing.com China sold a record number of US Treasury bonds in the first quarter of this year, diversifying from American assets, Bloomberg writes.
What is meant - in simple words
China got rid of American assets in the first quarter, in the form of U.S. Treasury bonds, in the amount of $53.3 billion.
In this case, China has changed one type of asset to another, which is also American - dollar. It is not entirely clear how the diversification from American assets is expressed here.
Most likely, China simply bought gold with the money it earned, because a special need for dollars for investment purposes in the real sector, due to the increased level of tension in China's trade relations with the United States, is unlikely in the near future. Due to this, the exchange price of gold has increased by 4% over the past week, reaching the level of $ 2,440 per ounce.
All this is happening because of the uncertainty in the Middle East.
China and other countries are now insuring financial risks against the background of geopolitics.
These circumstances do not give any head start to other currencies in relation to the dollar because of what is happening.
