China threatens 'nuclear option' of dollar sales

by merrie | August 7, 2007 at 07:51 pm
502 views | 20 Recommendations | 1 comment

 

Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress.

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mtippett
mtippett
flagged this story as Good Stuff

at 16:14 on August 8th, 2007

This is a threat that the West has been afraid of for some time.  It's unlikely that the Chinese would do it but just by making the threat, the Chinese are putting the dollar under pressure.

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