China keeps large dollar exposure off central bank reserves
Updated
Updated · Council on Foreign Relations · Apr 30
China keeps large dollar exposure off central bank reserves
2 articles · Updated · Council on Foreign Relations · Apr 30
Analysis estimates China Inc. may now hold more dollar assets off SAFE’s balance sheet than on it, with state banks’ net external dollar position above $700bn at end-2025.
China disclosed the dollar share of reserves fell to 55% by 2019 from 79% in 2005, but reserves have stayed near $3.3tn while policy banks, state lenders and investment funds accumulated dollar assets.
The shift suggests perceived de-dollarization has limited effect on global flows, as much of China’s overseas lending, restructurings and investment exposure still appears to be denominated in dollars.
China amasses dollars in secret while publicly de-dollarizing. What is the ultimate goal of this massive financial deception?
As China's shadow dollar empire grows, what unnoticed risks are building for the global financial system?