Strator: Rumors of the Chinese Central Bank Chief’s Defection

Stratfor is reporting a rumor that the head of China’s Central Bank has left the country, apparently one step ahead of the sheriff.

Rumors have circulated in China that People’s Bank of China (PBC) Gov. Zhou Xiaochuan may have left the country. The rumors appear to have started following reports on Aug. 28 which cited Ming Pao, a Hong Kong-based news agency, saying that because of an approximately $430 billion loss on U.S. Treasury bonds, the Chinese government may punish some individuals within PBC, including Zhou.

I’m not sure what to make of the report – particularly the bit about a $430 billion loss on US Treasuries. China reportedly has about $2.5 trillion in foreign exchange and such a loss would amount to about one-fifth of its total holdings. If true, it’s an incredible loss. Stratfor seems to discount the rumor, but stay tuned.

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Tagged as: China Central Bank, Zhou Xiaochuan