Tag Info

New answers tagged

0

The bank in china has to have an account at an intermediary bank, and order a transfer from that account to the account of the US bank. Therefore the chinese bank needs to have the dollars.


1

I am not expert but china has U.S. Treasury Bonds, so both sides does know how much bond china has and how much bonds getting converted to USD. Its all build on trust, otherwise start to stack sandbags.



Top 50 recent answers are included