Exploring Why International Reserves Are Falling

On today's market wrap on FinancialSense, market commentator explores an interesting issue, Strange Case of Falling International Reserves Explored

• ... The enormous growth of reserves in China are a direct consequence of billions of US dollars invested in China and deposited in Chinese banks by US supranational firms. These US firms are using Chinese contract manufacturers or US subsidiaries to produce cheap goods for the US market and elsewhere. This requires the People's Bank of China (PBOC) to buy US securities as reserves against US firms' massive bank deposits in country... full article here

See also THE STRANGE CASE OF FALLING INTERNATIONAL RESERVES by Hugo Salinas Price.