Asia Split Over China's "War Of Nerves" With U.S.

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Source: Reuters/NYTimes

'Asian policymakers are preoccupied with China's "war of nerves" over the U.S. dollar's global status rather than the impact of the Fed's debt buying on their vast dollar-linked savings, officials told Reuters.

The Federal Reserve's decision earlier this month to buy more than $1 trillion in long-term U.S. debt to push down rates drove the dollar sharply lower, though Asian officials said the actions were unsurprising given how much private lending has slowed.

Much more unanticipated was China's unusually aggressive push last week to replace the U.S. dollar as the top central bank reserve currency, they said.'



Read more: http://nytimes.com/reuters/2009/03/31/business/business-us-asia-centralbanks-china.html?adxnnl=1&adxnnlx=1238490042-gHu+o6AcaUcWTo5OXvX0Sw