Brad Setser points out that India doesn't peg to the dollar as much as China; India's forex reserves are falling, (this is me: while China's forex reserves are probably rising).
So we need to understand that the only really significant support for the US dollar's status as a central bank reserve currency comes from China, among state actors.
I think there is some risk that the US dollar can in the medium term lose its status as a central bank forex reserve currency.
A narrow path for India and China: de-risking engagement for a cautious
peace
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by Ajit Ranade, Nitin Pai, Ajay Shah.
The relationship between India and China is at its most difficult point in
decades. A foundation of political and m...
1 week ago
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