Wow, that's not good. I must have messed something up in the settings. I'm turning off paid subscriptions for the moment, watch for an update on that. Thanks for letting me know!
Plumbing question: When the PBoC holds US Tbills, the custody of the asset remains in the us? Moreover, for any foreign bank to hold domestic reserves (or domestic assets for that matter), it must have a local branch for custody issues, right? For example, i'm assuming that in order to hold usd reserves (or us bills) a brazilian bank must have a branch in the us. I'm struggling with how any original issuer (fed or treasury) keeps track on their liabilities once they "leave" the country.
Either a local branch, or a custodial arrangement with a US bank. And I think you are right that that is how they keep track of foreign ownership of their liabilities.
Right, the post is not super clear on that. The offshore bank has a banking license in another jurisdiction, say Hong Kong or London. So it can do business with anyone in those places according to local rules. The onshore bank does business *in China* with clients in other jurisdictions, but it cannot itself do banking business in those places.
Also, I'm having trouble to register for the yearly subscription. The answer I keep getting is: No such plan: 'yearly70usd'.
Wow, that's not good. I must have messed something up in the settings. I'm turning off paid subscriptions for the moment, watch for an update on that. Thanks for letting me know!
Plumbing question: When the PBoC holds US Tbills, the custody of the asset remains in the us? Moreover, for any foreign bank to hold domestic reserves (or domestic assets for that matter), it must have a local branch for custody issues, right? For example, i'm assuming that in order to hold usd reserves (or us bills) a brazilian bank must have a branch in the us. I'm struggling with how any original issuer (fed or treasury) keeps track on their liabilities once they "leave" the country.
Either a local branch, or a custodial arrangement with a US bank. And I think you are right that that is how they keep track of foreign ownership of their liabilities.
Hmm. If they both issue deposits against CNY reserves at the PBOC, what's the key difference between the offshore bank and the onshore bank?
Right, the post is not super clear on that. The offshore bank has a banking license in another jurisdiction, say Hong Kong or London. So it can do business with anyone in those places according to local rules. The onshore bank does business *in China* with clients in other jurisdictions, but it cannot itself do banking business in those places.