Hermes’s Dall’Angelo Sees Low Probability of U.S. Interfering With Yuan

The video discusses the People's Bank of China's (PBOC) strategy in managing the yuan amid US-China trade tensions, highlighting the shift from a trade war to a currency war. It explores the potential for US intervention in the FX market, with varying probabilities suggested by financial institutions. The discussion also covers the implications of China selling its US Treasury holdings, weighing the economic consequences and strategic considerations.

What are the potential consequences for China if it decides to sell its US Treasury holdings?

What is the significance of maintaining FX reserves for China in the context of its economic strategies?