China flags FX reserve risk from Fannie, Freddie

Discussion in 'Wall St. News' started by AAA30, Jul 16, 2008.

  1. AAA30

    AAA30

    China flags FX reserve risk from Fannie, Freddie

    http://uk.reuters.com/article/governmentFilingsNews/idUKPEK20207720080716
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    BEIJING, July 16 (Reuters) - The troubles of Fannie Mae and Freddie Mac pose new risks to China's $1.8 trillion foreign exchange stockpile, adding urgency to Beijing's goal of diversifying its reserves, a researcher at a top Chinese think tank said.

    The emergency rescue of the top U.S. mortgage finance companies showed that, along with a falling dollar, bonds and treasuries could also shed value, eating into China's forex reserves, Zhang Ming, a Chinese Academy of Social Sciences researcher, said in a report obtained by Reuters.

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  2. Lol, they only just realised? I guess the dollar falling 45% wasn't a good enough signal that the US might not be a great place to invest.