China's foreign exchange reserves 2012-2022
The world’s largest forex holder
For over 30 years, China has been the global factory and by having a trade surplus was able to grow its reserve assets to be the largest in the world. The most prominent currency on the People’s Bank of China’s balance sheet is the U.S. dollar. One of its main applications is the stabilization of the U.S. dollar to the yuan exchange rate.The yuan as a reserve currency
Currency can be a powerful tool that the Chinese government does not want to miss. Since the U.S. dollar is the global reserve currency, the United States has strong leverage over other countries. Therefore, to build a counterweight to American influence, Beijing works on establishing the Yuan as a second global reserve currency. So far China has set up a reserve pool with five other nations and opened offshore clearing houses around the world.