When Japan buys Chinese government bonds, it uses yen or US dollars

Chinese government bonds (denominated and settled in RMB) can only be bought in RMB. Just buy Japanese bonds in yen, and buy US bonds in dollars. A truth.

U.S. Treasury Aa+ (Safe Haven Assets) Japanese Government Bonds AA- (Safe Haven Assets) Chinese Government Bonds Aa+ Only Chinese government bonds are non-liquid and not safe-haven assets. The purpose of buying government bonds is not necessarily the same in different countries. For example, the United States does not buy non-US bonds (and the United States has no foreign exchange reserves).

Japan and China are the two largest holders of U.S. debt. The United States is playing financial control over the world (the United States is the world's largest financial economy), Japan is playing the export of manufacturing (Japan's industrial manufacturing industry is the world's first), and China is facing the problem of upgrading. The United States has the largest GDP, Japan and China are tied for second in terms of GDP, but in fact, China is third (the industry is not as good as Japan).

At present, the countries are divided into, the first tier of financial countries (**, ** and other virtual economies, such as the United States), the second tier of industrial countries (manufacturing heavy industry exports, such as Japan), the third tier of export-driven economic countries (light industry exports, such as China), and the fourth tier of export commodities (grain and resource exports, such as Australia) countries. The essence of China's economic transformation is to upgrade to a second-tier country. In fact, the question you raised can be explained as China's ultimate goal, which is to upgrade to the first tier of financial countries, relying on the issuance and repurchase of currency and treasury bonds to control the world economy (controlling finance is equivalent to controlling the world, such as US dollar bills and US Treasury bonds).

What are the national bonds of the United States, Japan, and China?

The treasury bonds issued by China ** are denominated in RMB, so the Japanese want to use RMB to buy Chinese government bonds! If the Japanese don't have a reserve of RMB in their hands, they can first throw away the dollars in their hands, and then **RMB, and then use ** RMB to buy Chinese government bonds!

Money and credit are not equated, and money is not just supported by credit! Currency is mainly about security, and most importantly! In turn, it is credit!

Summary. Hello dear and happy to answer your <>

The ways to buy RI bonds are:1First of all, before purchasing savings treasury bonds for the first time, you need to bring your personal SFZ and bank K to the bank counter to open an escrow account before you can purchase.

2.Certificate treasury bonds: This type of treasury bonds can only be purchased at the counter of the underwriting bank, and generally bring personal SFZ and bank K to the underwriting bank on the day of issuance.

3.Electronic savings bonds: These bonds can be handled over the counter of the underwriting bank or through online banking.

How to buy Japanese government bonds.

Hello dear dear, happy to answer your <>

The ways to buy RI bonds are:1First of all, before purchasing savings treasury bonds for the first time, you need to bring your personal SFZ and bank K to the bank counter to open an escrow account before you can purchase.

2.Certificate-type national transport bonds: This kind of treasury bonds can only be purchased over the counter of the underwriting bank, and Hengliang generally carries his personal SFZ and bank K to the underwriting bank to purchase on the day of issuance.

3.Electronic savings bonds: These bonds can be handled over the counter of the underwriting bank or through online banking.

For many years, there has been no reason for the decline of RI bonds: the bank (the ** bank of RI) can buy RI bonds, and this system has been legally guaranteed. It is the largest creditor country in the world, and its external debt is much higher than its external debt.

Its current income and expenditure (mainly composed of two major parts: external revenue and expenditure and income and income) maintain an annual surplus (about 150 billion US dollars in 2021), and its foreign exchange reserves are sufficient (the second in the world). Overseas investors account for only about 8% of the long-term government bonds. In other words, RI bonds are basically domestic bonds.

4.When there is a **** of government bonds, domestic holders of RI usually do not follow the sell-off, adding fuel to the fire.

Hello, I am glad to serve you and give you the following answer: The reason why Japan buys a large number of US Treasury bonds is that Japan hopes to stabilize the yen exchange rate and maintain the stability and development of the Japanese economy by buying US Treasury bonds. Workaround and Procedure Steps:

1.First of all, Japan needs to formulate a fiscal policy that can be effective in order to ensure the stability and development of the Japanese economy. 2.

Second, Japan** needs to develop an effective foreign exchange policy to stabilize the yen exchange rate. 3.Finally, Japan** needs to buy a large number of U.S. Treasury bonds to maintain the stability of the yen exchange rate.

Personal Tips:1In order to stabilize the yen's exchange rate, Japan** needs to formulate effective fiscal and foreign exchange policies.

2.Japan** needs to buy a large amount of U.S. Treasury bonds to maintain the stability of the yen exchange rate. 3.

Finally, in order to maintain the stability and development of the Japanese economy, Japan** needs to continue to buy U.S. Treasury bonds.

Hello, I am glad to serve you and give you the following answer: The reason why Japan buys a large number of U.S. Treasury bonds is that Japan** wants to stabilize the yen exchange rate and maintain the stability of the Japanese economy by buying U.S. Treasury bonds. Workaround:

1.First of all, Japan should strengthen its fiscal policy, increase fiscal revenue, and reduce fiscal expenditure, so as to reduce Japan's purchase of U.S. Treasury bonds. 2.

Second, Japan** should strengthen monetary policy and raise the yen exchange rate to reduce Japan**'s purchases of US Treasury bonds. 3.In addition, Japan's economic policy should be strengthened, the economic structure should be improved, and economic growth should be increased to reduce Japan's purchase of U.S. Treasury bonds.

Personal tip: Japan's purchase of U.S. Treasury bonds may have a negative impact on the Japanese economy, so Japan** should take effective policy measures to reduce the purchase of U.S. Treasury bonds in order to maintain the stability of the Japanese economy.

I think what the above two netizens said is not right that even if they sell US Treasury bonds, no one will take over at all. Treasury bonds are not only issued for other countries, but can be purchased by anyone. Although U.S. Treasury bonds are held by many countries, many investment institutions are also keen to hold U.S. Treasury bonds because their default risk can be said to be none.

This is something that no country in the world can do with its national debt.

Let's answer the landlord's question again. A massive sell-off of U.S. Treasury bonds will deal a blow to the U.S. economy. First of all, a large number of selling treasury bonds, will drive the treasury bonds (the principle of supply and demand), the **** of the treasury bonds, his rate of return will rise (because of the ****, but the coupon is still unchanged), the increase in the rate of return will drive a large number of idle funds in the market to invest in the treasury bonds, then the funds invested in social development activities will be reduced, and the speed of economic development will slow down.

Holding U.S. Treasuries has its benefits for China. First, China's foreign exchange reserves, which have a surplus of more than 1 trillion yuan, need to find local investment. U.S. Treasuries are recognized as having no default risk, so investing in U.S. Treasuries is the safest.

Second, the reason why the renminbi has been able to maintain such low exchange rate fluctuations against the US dollar is also due to the large amount of US Treasury reserves. As soon as there is pressure to force the renminbi to appreciate, China can sell the renminbi in large quantities, and the U.S. Treasury bonds. If the yuan is forced to depreciate, it is possible to sell US Treasury bonds, yuan.

The purpose of holding U.S. and other national Treasury bonds is to maintain and increase the value of foreign exchange reserves.

Foreign exchange reserves, also known as foreign exchange reserves, refer to the foreign exchange assets held by ** banks and other ** institutions in various countries in order to meet the needs of international payments, that is, foreign exchange reserves.

The specific forms of foreign exchange reserves are: short-term deposits abroad or other means of payment that can be cashed abroad, such as foreign currency**, checks, promissory notes, foreign currency drafts, etc. It is mainly used to pay off the balance of payments deficit and intervene in the foreign exchange market to maintain the exchange rate of the country's currency.

Functions: 1. Regulate the balance of payments and ensure external payments;

Second, intervene in the foreign exchange market and stabilize the exchange rate of the local currency;

3. Maintain international credibility and improve financing capacity;

Fourth, enhance comprehensive national strength and resist financial risks.

Some people say things that sound reasonable, but they are fallacies. You sell U.S. Treasury bonds, who takes over? Now there are only 3 people in the world who have money: the United States, Japan, and China, and only the United States and Japan can catch China's selling.

1.Leave it to evaporate.

2.There is no turning over.

If you say throw it, throw it away, who will listen to what you say?

You need to understand Treasuries and central banks first.

Treasury bonds are debt certificates issued by the ** department because the financial revenue cannot be offset by expenditure, that is, an IOU for borrowing money, which is repaid by future taxes, and interest is paid every year.

The Bank of Japan is the department that manages the circulation of money, including the issuance of money; The Bank of Japan to buy the government bonds issued by Japan, which is equivalent to printing banknotes to undertake the debts of Japan, the more banknotes are released, the corresponding commodities in the society do not increase, then the banknotes will depreciate and become worthless.

The more money the central bank puts into the market, the more money depreciates.

Japan has historically been a major "loyal buyer" of U.S. Treasuries. In 2010, Japan bought $130 billion in U.S. Treasury bonds, most of which came from the state's surplus. At the end of last year, Japan's holdings of U.S. Treasury bonds totaled $882 billion.

Most of the holders of these bonds are the Japanese private sector, such as Japanese insurance companies and banks. In 2011, Japan continued to buy U.S. Treasury bonds, according to data released by the U.S. Treasury Department on July 18, as of May this year, Japan held $912.4 billion in U.S. Treasury bonds, and remained the world's second largest creditor of the United States.

Japan's holdings of U.S. Treasuries reached a record high of one trillion dollars.

Japan holds about a trillion dollars in U.S. debt, which is close to ours. The two countries almost "alternately" as the largest creditor of the United States.

Of the $22 trillion in U.S. Treasury bonds, one trillion U.S. dollars are purchased by foreign countries, accounting for about 30 percent of the total amount of U.S. Treasury bonds.

Among foreign investments, China and Japan are the largest investors, each with about one trillion dollars in US Treasury bonds. In third place is Brazil, with about $330 billion. The remaining 70% is purchased by US investment institutions, banks, nationals, and even the Federal Reserve and the United States.

With pension assets as high as $29 trillion in the United States, Treasury bonds are naturally a high-quality choice.

The U.S. national debt accounts for about 107% of GDP, and in fact, Japan has trillions of dollars in national debt, and Japan's debt-to-GDP ratio is as high as 254%.

Japan increased its holdings of U.S. Treasuries to a record high of $1 trillion in March 2020. The total amount of U.S. ** bonds held was lower than in February.

Japan is second only to China and holds quite a few U.S. Treasury bonds, and there are really a lot of them, and we have a lot of them, so the United States has nothing to fear about us.

According to the latest data released by the U.S. Treasury Department on September 16, 2020, Japan's holdings of U.S.** bonds increased by $31.5 billion to trillions in July, the highest since data began in 2000.

Japan's holdings of U.S. Treasuries rose by $25.4 billion to trillions in January, the highest level since August last year.

Didn't see the latest data. However, Japan's holdings of U.S. Treasury bonds have always been around $1 trillion.

1. All U.S. and Japanese government bonds are issued by their own countries, and the specific department is the Ministry of Finance; The Ministry of Finance is in charge of a country's revenue and expenditure, which mainly comes from taxes, including national defense, education, health care and social welfare.

Buyers are mainly investors such as countries, corporations, and individuals who hold the US dollar and the Japanese yen.