Quote:
Originally Posted by xxxRumor
They will not swap a trillion in a day, they will swap a 0.02% of a percent or so a day and not every day for many month so the rates won't take a big dive it is not in their best interest. For big traders in and out of a position takes 1-3 month talking about china it could take several years. If they dump 1 trillion in one day the whole worlds economy will feel the effect.
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True. This is nothing new - China stated plans in either 2004 or 2005 to balance their currency reserves and prob have been slowly doing that since then. They have also been "investing" dollars in other long-term ways eg giving away dollars as 'aid' to enhance/encourage global trading deals - basically the same as dumping, but avoids the damage of dumping.