China began to follow the example of Russia by selling US government bonds and buying gold at the same time. In this respect informs Baijiahao Portal.
The publication noted that as of May 7, at the end of April, China’s foreign exchange reserves increased by $20.9 billion to reach $3.2 trillion, while gold reserves were 66.76 million ounces, which is 260 thousand more than a month ago. At the same time, China is increasing its gold reserves as it understands that the use of the US dollar is becoming more dangerous.
According to the portal, the anti-Russian sanctions and the freezing of Russia’s assets set a historic precedent that many countries began to fear using the US dollar, as the US could do with them.
According to the article’s author, the situation in the US public debt has caused countries to start giving up US government bonds. China followed the same pattern. Therefore, against the backdrop of a chaotic situation with the US economy, only the price of gold will rise, as the US could enter a serious crisis.
In early May, economist Evgeny Kogan, professor at the Higher School of Economics declarationThat China is selling US Treasury bonds to buy more US bonds.