China 'caught in US money trap' - 25 May 09

Posted by Mike at 1:41 AM

China is estimated to have currency reserves of two trillion dollars, but the bulk of it is tied up in US markets.Caught in a "dollar trap", it has little choice but to buy more and more US government bonds to keep up the value of the dollar and hope a US recovery takes place - and quickly.Al Jazeera's Owen Fay reports.