The central bank of China has decided that it is "no longer in China’s
favor to accumulate foreign-exchange reserves". During the third
quarter of 2013, China's foreign-exchange reserves were valued at
approximately
$3.66 trillion. And of course the biggest chunk of that was made up of U.S. dollars. For years, China has been accumulating dollars and working hard to keep
the value of the dollar up and the value of the yuan down. One of the
goals has been to make Chinese products less expensive in the
international marketplace. But now China has announced that the time
has come for it to stop stockpiling U.S. dollars.