What type of currency does China use to buy foreign government bonds?

This is not for China to decide! It depends on the bond issuer's own decision on which currency to issue treasury bonds! Normally, the country's national bonds are issued in the country's national currency!

For example, this time, Japan bought Chinese government bonds. Japan buys Chinese government bonds with yuan! Japan first threw away some US dollars and some renminbi in its hand, and then used the renminbi to buy China's government bonds!!

Because the treasury bonds issued by our country are all denominated in RMB! It is not allowed to buy Chinese government bonds with dollars! It is also not allowed for us to use the yuan to buy the US people's government bonds directly!

The main purpose of the state's bond issuance is to raise funds, and what you want to raise is the funds in that currency, and you will use that national currency to denominate! For example, when you want dollars, you issue dollar-denominated debt; When you want yen, you issue yen-denominated bonds! If China** wants to raise some yen to use, it can also issue yen-denominated bonds!

Depending on what kind of currency you want to raise, you can issue a debt in that currency!

In short, it depends on the currency in which the government bonds issued by the issuing country are denominated!!

The above is a personal opinion, not necessarily all right, only for reference!

The foreign currency made in China - the latest version of Nepal is 5 rupees.

However, it seems that this question can only be asked to the Ministry of Finance, because we do not have a clear list of foreign countries or institutions that hold Chinese government bonds, and we have not published it.

The vast majority of China's government bonds are purchased by domestic institutional investors (banks, insurance, etc.) and individuals. However, the Ministry of Finance also has a small number of treasury bonds that are directly auctioned overseas, and China issues RMB treasury bonds in US dollars, and overseas institutional investors can directly buy them with US dollars; China has also issued people-denominated treasury bonds overseas, and foreign central banks (such as Southeast Asian countries) and institutional investors have also bought enthusiastically, and the interest rate is even very low, because they are optimistic about the appreciation trend of RMB assets.

The reason why China has not issued renminbi bonds overseas on a large scale is that the renminbi is not yet completely freely convertible, and it is difficult for foreign investors to directly exchange the renminbi with foreign currencies such as the US dollar through the central bank of China. Therefore, Hong Kong has been committed to building an offshore RMB treasury bond trading market, which is in line with this trend.

In the future, the large-scale circulation of RMB treasury bonds overseas will be a general trend, and when I visited the UK a few days ago, I also said that I would support London to build an offshore RMB market, which is what it meant. This will also be an important step towards the internationalization of the RMB, because the Chinese government bonds held in the market can be freely traded, which means that the liquidity of the assets has increased a lot, which will make the Chinese government bonds generate a premium; At the same time, the well-liquid Chinese government bonds will also become the new favorite of foreign central banks, which means that the renminbi will become the foreign exchange reserves of other countries (now Malaysia and Nigeria have included the renminbi in their foreign exchange reserves). It is believed that in the next three to five years, we will see more cases of the renminbi becoming the foreign exchange reserve of other countries.

Certificate and savings bonds are purchased through banks during the issuance period; Book-entry treasury bonds can be purchased through major state-owned banks and ** companies; You only need to bring your ID card to handle the above!

It is recommended to buy savings or certificate treasury bonds, which have a higher interest rate than bank fixed savings rates in the same period, which are more suitable for individual investors.

Tomorrow, May 11, major banks will start selling the fourth, fifth and sixth tranches of savings bonds (electronic) in 2011, with a maturity of 1 year and an annual interest rate; The fifth instalment has a term of 3 years and an annual interest rate; The sixth instalment has a term of 5 years and an annual interest rate. The interest on the three tranches of the Treasury bonds began on May 10, 2011, and the interest is paid annually, with the principal repaid at maturity and the last interest payment. Compared with bank deposits in the same period, the annual interest rate of the fourth tranche was higher by one percentage point, the fifth tranche of treasury bonds was higher by one percentage point, and the sixth tranche of treasury bonds was higher by one percentage point.

Between 2016 and 2019, China's total holdings of U.S. Treasury bonds remained in the trillions range. As of April 25, 2020, China's total holdings of U.S. Treasury bonds have reached one trillion dollars.

Certificate Treasury Bonds Since 1994, certificate treasury bonds have been issued, and claims are recorded in the form of a "treasury bond receipt certificate" (the name of the purchaser, the issuance interest rate, and the purchase amount are stated on the certificate). Certificate-type treasury bonds are issued to the public through the savings outlets of various banks and the treasury bond service department of the financial department, and the interest is calculated from the date of purchase by investors. If investors need to cash out certificate-type treasury bonds after purchasing them, they can redeem them in advance at the original purchase outlets, and in addition to repaying the principal, they can also calculate and pay interest according to the actual number of days they hold and the corresponding interest rate grade.

For the certificate treasury bonds that are redeemed in advance, the handling outlets can also sell them for the second time. Certificate-type treasury bonds, similar to foreign savings bonds, are a kind of treasury bonds designed for the characteristics of individual investors with the nature of savings, which are relatively safe and have the characteristics of convenient purchase, custody and cashing. Book-entry Treasury Bonds Book-entry treasury bonds are a type of listed securities issued in 1994.

Book-entry treasury bonds do not need to print coupons and vouchers, but use accounts to complete the whole process of treasury bond issuance, trading and redemption through a computer system. Book-entry treasury bonds can be registered and reported as lost, with good security, low issuance cost, short issuance time, high issuance efficiency, and simple transaction procedures, which are being accepted by more and more investors. Due to the characteristics of the issuance and trading of book-entry treasury bonds, it is mainly designed for the requirements of individual investors with strong financial awareness and institutional investors with cash management needs for asset preservation and appreciation.

Bearer (in-kind) treasury bonds Bearer treasury bonds are physical treasury bonds, which record creditor's rights in the form of physical coupons (the year of issuance, the face amount of the coupons, etc.), and are a kind of treasury bonds with the longest history of issuance in China. At the time of issuance, it will be sold to the public through the savings outlets of various banks, the treasury bond service department of the financial department and the business outlets of the treasury bond operating institutions, and investors can also use the **account to entrust the ** business institutions to purchase on the ** exchange floor. Bearer treasury bonds shall be subject to interest accrual from the date of issuance, and shall be bearer and shall not be reported as lost, and may be listed for circulation.

If you need to trade after the end of the issuance period, you can directly go to the treasury bond operating institution to list ** trading on its counter, or you can use the ** account to entrust the ** business institution to buy and sell on the ** exchange floor. Directional Bonds Directional Bonds: In order to raise funds for national construction and strengthen the investment management of social insurance, with the approval of the Ministry of Finance, the Ministry of Finance will take the main measures to pension insurance and unemployment insurance (abbreviation:

The bonds raised by the two golds) and other social insurance** are called "special directional bonds", referred to as "directional bonds".

Including bonds from Germany, France, Italy, and other countries.

British government bonds: are bonds issued by the United Kingdom** and are one of the oldest government bond markets in the world. "Hu Dan Yun P>

Japanese government bonds: are bonds issued by Japan** and are one of the largest government bond markets in the world.

Emerging market treasury bonds: are bonds issued by emerging market countries**, including bonds from China, India, Brazil, Russia and other countries.

Corporate bonds: are bonds issued by companies, including high-yield bonds in the United States, corporate bonds in Europe, etc.

It should be noted that there are huge differences in bond markets in different countries and regions, and investors need to understand the relevant risks and regulations before investing.

Why is there a large amount of domestic government bonds? If money is tight, why do you still buy a lot of US Treasury bonds?

To buy Chinese bonds, you need to use international currency, ** Chinese bonds The renminbi does not necessarily appreciate, and there are too many factors for the appreciation of the renminbi, as for why you buy it, it is because you are optimistic about China's future development.

1.Promoting economic development is better than better.

2.**Bonds show that the RMB is good, and of course the price of good things will rise.

3.If you buy it, of course, you can use RMB.

External debt is not only an investment, but also a guarantee for apportioning financial risks. Investing is for profit. When the state buys foreign debt, the proceeds can be both economic and political. The issues involved are complex.

How to improve the economic strength from the country, to have money, the most important thing is taxes. How to make money circulate is to stimulate domestic demand, and the people must have purchasing power, and 80% of China's population is agricultural. Agriculture is the foundation of the country, so the price of agricultural and sideline products should be raised, the problems of agriculture, rural areas and rural areas should be solved, and agricultural taxes should be abolished, precisely to protect the interests of the majority of peasants.

But agriculture can only be in the basic position, and there will be no agricultural products in the luxury goods of the first place. Improving the quality of life will always be based on agriculture and higher than agriculture. Because people's needs are more diversified after satisfying food and clothing, this is not a problem that agriculture can solve.

You're definitely focused on the core issues, but most people don't value them or deliberately ignore them.

The biggest demand for a country to buy foreign exchange is for the best exchanges between the two countries and to save costs for settlement. For example, two countries, A and B, do not buy each other's foreign exchange. When there is a ** exchange between two countries, it is necessary to choose a currency as the denominated currency, and the international currency is the US dollar.

At this time, the importer must convert his currency into US dollars, and then pay it to the exporter, and then the exporter must exchange it for his own national currency after getting the US dollar, which will incur a large amount of processing fees for currency exchange, and there will also be troubles in the formalities. However, if countries A and B buy each other's foreign exchange, they can directly settle with foreign exchange without unnecessary trouble.

And China currently holds mostly U.S. Treasury bonds. China's original intention in holding U.S. Treasuries was to prevent the renminbi from collapsing in the event of a crisis. This principle involves a bunch of theories again, so I won't elaborate on it here.

And now China does not ** U.S. Treasury bonds and even continue to increase its holdings because China, as the largest holder of U.S. Treasury bonds, if it begins to sell U.S. Treasury bonds, it will inevitably cause market panic, causing everyone to sell, which will lead to a large price drop in U.S. Treasury bonds, so China's current holdings of U.S. Treasury bonds will depreciate, and the result is that China's assets have shrunk seriously.