China's dollar woes have jumped in recent months, so much that they've come out of the eurodollar shadows enough to impact the onshore banking system in an unexpected way. Foreign holdings of negotiable bank CDs have exploded. We'll discuss what that means and how it relates to China's dollar shortage and the surprise set of rate cuts announced by the PBOC earlier today.
Eurodollar University's Money & Macro Analysis
Bloomberg Global Funds Pile Up Nearly a Trillion Yuan of China Bank Bonds
https://www.bloomberg.com/news/articles/2024-07-22/global-funds-pile-up-nearly-a-trillion-yuan-of-china-bank-bonds
Bloomberg China Surprises With Rate Cut After Xi’s Big Meeting Disappoints
https://www.bloomberg.com/news/articles/2024-07-22/pboc-cuts-seven-day-reverse-repo-rate-to-1-7-to-support-economy
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Twitter: https://twitter.com/JeffSnider_EDU
What is Eurodollar University?
Jeff Snider will guide you through the realm of monetary science. Multiple episodes uploaded each week, discussing big news and key current events, the state of markets and what they are telling you, as well as historical summaries and deep background material so that you can understand what’s really going on in this eurodollar’s world.