Deutsche Bank: It's Chinese 'Quantitative Tightening' That's Been Slamming Markets Around the World
Forget QE. Now it's all about QT.
The People's Bank Of China (PBOC) headquarters on Saturday, Nov. 8, 2014.
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The recent selloff in global markets has been largely associated with what's going on in China (the yuan devaluation, the Shanghai Composite plunge, the slowing growth). But Deutsche Bank's FX Strategist George Saravelos pinpoints Chinese "Quantitative Tightening" as the key factor to watch.
Here's Saravelos explaining that basically China built up reserves just like the Fed did in recent years, and the world has to contend with that reversal.