China's Banks Are Bursting With Dollars, And That's A Worry
China's Banks Are Bursting With Dollars, And That's A Worry
Tue, June 1, 2021 By Winni Zhou and Tom Westbrook
SHANGHAI/SINGAPORE (Reuters) - A mountain of dollars on deposit in China has grown so large that banks are struggling to loan the currency and traders say it poses a risk to official efforts to control a fast-rising yuan. Boosted by surging export receipts and investment flows, the value of foreign cash deposits in China's banks leapt above $1 trillion for the first time in April, official data shows A previous jump, late in 2017, preceded heavy dollar selling which turbocharged a steep yuan rally in early 2018.
Market participants say the size of the even bigger hoard this time raises that risk, and leaves policymakers' efforts to restrain the yuan vulnerable to the whims of the exporters and foreign investors who own the cash.
"This positioning in particular, in our view, is susceptible to a capitulation if the broad dollar downtrend were to continue," said UBS' Asia currency strategist Rohit Arora, especially if the yuan gains past 6.25 or 6.2 per dollar.
"We think a break of these levels ... has the ability to affect market psyche," he said, since they represent, roughly, the yuan's 2018 peak and its top before a devaluation in 2015, and trigger selling from local corporations in particular.
The heavily managed yuan is at three-year highs, having rallied through major resistance at 6.4 per dollar, and it clocked its best month since November in May.
Concerned this rapid rise could unleash huge conversion of the deposits into yuan, the People's Bank of China (PBOC) said on Monday that from mid-June, banks must set aside more reserves against them to discourage further accumulation.
STATE RESTRAINT
The central bank's stance marked a shift towards confronting a trend that gathered steam while the bank had, publicly at least, kept to the sidelines. Since 2017, the PBOC has largely left the yuan to market forces, keeping its currency reserves just above the $3 trillion mark, while behind the scenes the state-bank and private sectors stepped in.
Over the 16 months to April, dollar deposits rose by $242.2 billion, PBOC data shows, a rise equal to about 1.8% of gross domestic product and bigger than the much-vaunted inflows into China's bond market, which totalled about $220 billion for the period.
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Rob Cunningham: Treasury Secretary Bessent is the Smartest Banker on Earth
8-21-2026
Treasury Secretary Scott Bessent is the smartest banker on earth.
Stablecoins destroy the Central Banker’s scarcity deception when sound currencies and tokenized real-world assets prove – in real time – the vastness of real-world value that actually exist in abundance.
The Clarity Act and the RV Explained | Global Financial Reset
End the Fed by Dr. Scott: 8-21-2026
John Michael Chambers assembles an expert panel—Will Barney, Captain Rob Cunningham, and first-time guest Doctor Scott Young—for a deep dive into the global financial reset, the Clarity Act, the RV, and the path from tyranny to sovereignty.
Will Barney opens with a critical point: we cannot have sound money without first reclaiming our sovereign elections and government.
Bruce’s Big Call Dinar Intel Thursday Night 8-20-26
Transcribed By WiserNow Emailed To Recaps (INTEL ONLY)
Welcome everybody to the Big Call tonight – it is Thursday August 20th and you’re listening to the Big Call. So thank you for tuning in, everybody, wherever you're located, all over the globe, and we're gonna have a nice call tonight. Hopefully, we won't will not go two hours like we did Tuesday night. Hopefully, we'll shorten things up a little bit for that, but we'll still get all the information that you need out.
All right, let's move into our intel segment. You know what's interesting is, you know, we have got some intel for tonight. I finally have a timeline. I think we can work with. You know, I like a timeline. I like planning. I like seeing things as they come into fruition.
Good Afternoon Dinar Recaps,
India Pushes the Rupee Further Into International Trade as Dollar Dependence Gradually Diversifies
New trade rules make it easier for Indian exporters to invoice and receive payment in rupees, adding another piece to the gradual diversification of the global payments system.
MilitiaMan & Crew: Direct From The Crew: August 20th Analysis
8-21-2026
The Crew: Samson, PompeyPeter, Petra, Daytrader, Sunkissed, GIGI and Militia Man
No drama. No intrigue. No songs and dances. Just straight, factual news that I read and interpret to the best of my ability after being an avid Dinar investor and insanely obsessed Dinarian for over 15 years.
Follow MM on X == https://x.com/Slashn
Coffee with MarkZ, joined by Mr. Cottrell. 08/21/2026
Some highlights by PDK-Not verbatim
MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context. Be sure to consult a professional for any financial decisions
MZ: Ping-Pong stories on the zeros, budget, and a few world events before Mr. Cottrell takes questions. Lucas from the Gurus is going to anchor things and join afterwards.
Note: All intel should be considered as "Rumors" until we receive official announcements ...and “Rates and Dates” could change anytime until we get to the banks/redemption centers.
RV Excerpts from the Restored Republic via a GCR Update as of Fri. 21 Aug. 2026
Compiled Fri. 21 Aug. 2026 12:01 am EST by Judy Byington
On Mon. 24 Aug. 2026 the ISO 20022 messaging (that defines how banks transmit payment information), completes its transition across all major banking rails. For the first time in history SWIFT, Federal Reserve, European Central Bank, Bank of England, BRICS, IMF and all high value cross-border payment systems will speak the same transaction language. …Tier4b ISO20022 on Telegram Tues. 18 Aug. 2026
Independent Sources Reveal: Iraq's 2027 Budget Is Set At 200 Trillion Dinars, With The Exchange Rate Fixed At 1320.
August 20, 2026Last updated: August 20, 2026 Al-Mustaqilla - According to informed sources speaking to Al-Mustaqilla on Thursday, the Iraqi government is moving towards adopting a dollar exchange rate of 1320 Iraqi dinars within the 2027 budget project, with no current intention to change the adopted exchange rate.
Good Morning Dinar Recaps,
The Dollar-Debt Disconnect: Why Higher Treasury Yields Are No Longer Supporting the Dollar
U.S. borrowing costs remain elevated as Treasury intervention loses momentum, oil approaches $95 and investors reassess the relationship between American debt, interest rates and the dollar.
TNT:
Tishwash: The Washington Post: Iraq under al-Zaidi's leadership is on a path of positive change
In an article published in The Washington Post on Thursday, Tim Constantine reviewed the key achievements of Iraqi Prime Minister Ali Faleh al-Zaidi during his first 100 days in office.
The article, titled "What Has Iraq's Prime Minister Accomplished in His First 100 Days?", stated: "When a new US president is sworn in, the media often rushes to make grand predictions about what can be accomplished in the first 100 days. The momentum generated by the national election, the enthusiasm surrounding the arrival of a new president, and the political capital he brings all raise expectations for the initial start.
KTFA
Thursday Night Video
FRANK26….8-20-26….THE FRENCH…THE END
This video is in Frank’s and his team’s opinion only
Frank’s team is Walkingstick, Eddie and Omar in Iraq and guests
Playback Number: 605-313-5163 PIN: 156996#
Al-Hashemi: Iraq Is The Biggest Loser From The Tightening Of The US Blockade On Iran
Money and business Economy News – Baghdad Economist Ziad al-Hashemi warned on Thursday of the repercussions of any US tightening of the economic blockade on Iran, stressing that Iraq may be one of the most affected regionally because of its dependence on Iranian gas and commodities.
"The surrounding countries of Iran, led by Iraq, Turkey, Turkmenistan, Afghanistan, Pakistan and Armenia, will be under direct American pressure to review their trade and financial relations with Tehran and avoid collisions with the United States," he said.
Shattering the Myth That Higher Taxes Can Fix the $40 Trillion National Debt
Notes From the Field By James Hickman (Simon Black / Sovereign Man) August 20, 2026
In June of 1944, American soldiers were storming the beaches of Normandy, single-handedly leading the fight to defeat the Nazis.
Back home, Americans gave everything they had. Some 85 million bought war bonds. The top income tax rate hit 94%, the highest in US history. Even ordinary people paid more and more income tax to support the war effort.
The Treasury Just Admitted It... The Bond Market Is Broken
Peter Schiff: 8-20-2026
Peter Schiff breaks down the Treasury's panic move to rescue the bond market, the $40 trillion debt milestone, and gold's $185 reversal day.
The Treasury just doubled its bond buybacks. Peter Schiff says that's the government admitting the bond market is broken.
On the same day the national debt topped $40 trillion, the Treasury announced it is doubling its long-term bond buybacks from $2 billion to $4 billion... buying the bonds everybody else is selling, and funding it by issuing more short-term debt.
Ariel: This Needs to be Said on Record
8-20-2026
When You Run Across Those Who Are Unsure (Show Them This)
You’re holding a piece of paper that was called worthless by the same international banking structure that called the Iraqi Dinar “speculative” and the Vietnamese Dong “non-investment-grade.” The same structure that told everyone their mortgages were secure in 2007. The same structure that said the petrodollar was eternal.
Oil Prices Hover Near Peak During Hormuz Impasse
2026-08-20 Shafaq News Oil prices steadied in early trade on Thursday as investors assessed the outlook for the U.S.-Iran war and the security of shipping through the Strait of Hormuz.
Brent crude futures for October delivery rose 25 cents, or 0.3%, to $91.87 a barrel by 0037 GMT, while U.S. West Texas Intermediate crude futures for September slipped 2 cents to $85.81 a barrel. The more active October WTI contract gained 14 cents, or 0.2%, to $84.53.
Good Afternoon Dinar Recaps,
Treasury Intervention Loses Its Grip as Oil, Debt and Bond Yields Reignite Global Market Pressure
The Treasury's effort to calm the long-term bond market provided only temporary relief. As yields climb again, oil approaches $94 and U.S. debt surpasses $40 trillion, investors are confronting a more difficult question: can policy intervention overcome the underlying forces driving the global repricing of risk?
Coffee with MarkZ, joined by Dr. Scott Young. 08/20/2026
MarkZ Disclaimer: Please consider everything on this call as my opinion. Be sure to consult a professional for any financial decisions
MZ: Dr. Scott Young returns to the show today. Progress, Economic D-day, and Debt
MZ: The bond side is still a wall of quiet.
TNT:
Tishwash: Removing zeros: A currency restructuring or a step to boost confidence in the dinar?
The issue of removing zeros from the Iraqi currency has resurfaced, amid economic debate about the feasibility of this step and its implications for the value of the dinar and the purchasing power of the citizen, as well as the readiness of the banking and financial sectors to implement it.
Economic experts believe that removing zeros, if implemented within a comprehensive study and a clear plan, could contribute to restructuring the currency and simplifying financial and banking transactions, while emphasizing that the measure itself does not mean an increase or decrease in the purchasing power of the dinar, as long as prices, salaries and savings are transformed at the same rate.
KTFA
Friday Night Video
FRANK26….8-21-26….BANK STORY AND TAX INFO
This video is in Frank’s and his team’s opinion only
Frank’s team is Walkingstick, Eddie and Omar in Iraq and guests
Playback Number: 605-313-5163 PIN: 156996#