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Wednesday, February 24, 2010

China orders retreat from risky dollar assets

China has ordered managers of its vast currency reserves to withdraw from risky dollar assets and retreat to core debt guaranteed by the US government, a clear sign that Beijing is battening down the hatches for fresh trouble on global markets.

Chinese bank teller - China orders retreat from risky assets

A bank teller counts dollars at a bank in Shanghai: China appears to be braced for more trouble in financial markets

A Communist Party directive leaked to the Chinese-language edition of the Asia Times said dollar reserves should be limited to US Treasuries or agency mortgage debt such as Freddie Mac that enjoys Washington's implicit backing.




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