The charts do look convincing, but I find it somewhat dubious that the relationship is better explained by total foreign holdings. One explanation I could think of is some foreign holdings could be difficult to attribute back to China, is that true? Would be interesting to see the correlation between MoM change of foreign holdings vs MoM change in CNY.
Also just generally, the 5s30s steepen because 5s are used for reserve accumulation?
The charts do look convincing, but I find it somewhat dubious that the relationship is better explained by total foreign holdings. One explanation I could think of is some foreign holdings could be difficult to attribute back to China, is that true? Would be interesting to see the correlation between MoM change of foreign holdings vs MoM change in CNY.
Also just generally, the 5s30s steepen because 5s are used for reserve accumulation?
Thanks.