from Zero Hedge:
…As a result of the latest TIC data we know know with almost complete confidence that:
i) “Belgium” is, or rather, was a front for China: either SAFE, CIC, or the PBOC itself.
ii) That Belgium’s holdings, after soaring as high as $381 billion a year ago, have since tumbled back to only $2532 billon as China has dumped the bulk of its Euroclear custody holdings, and that once this number is back to its historical level of around $170-$180 billion, “Belgium” will again be just Belgium.
iii) China’s foreign reserves tumbled and this was offset by a the biggest quarterly drop in Chinese pro-forma treasury holdings, which dropped by a record $72 billion in the month of March, and a record $113 billion for the quarter.
So why mask its offshore holdings? So when China proceeds to liquidate nearly $100 billion via its custody account, the US didn’t feel compelled to chastise Beijing. After all there is no official confirmation that Belgium is indeed China, and likely won’t be – it was merely a buffer account which China used to build up TSY holdings in, and now – to rapidly liquidate.
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