Growing forex, growing concerns

China has an enormous amount of foreign exchange reserves and needs to protect and take advantage of these assets.

It is necessary to guarantee the "safety, liquidity and positive value" of the assets through diversified investments. That is why the country has purchased a number of foreign debts, mostly in U.S. treasuries.

But now instability of the U.S. dollar has become a great concern for the safety of these investments and China cannot afford any mistakes in the management of the national financial assets. The U.S. Government should also take action to assure foreign investors of its treasury bonds, an act that will be beneficial to both the United States and its investors.