Chinese Reserves Rise in USD in March, But Fall in SDR

In the financial markets, an asset isn't said to be in a true bull market unless it's making new highs in multiple currencies. We can apply this to China's forex reserves as well, which increased 10 billion when measured in USD, but fell 38 billion measured in SDR (the PBoC now reports reserves in USD and SDR). Outflows continued in March, but were hidden by the falling U.S. dollar.

As I've been saying for some time, this is a U.S. dollar story and it remains so. The PBoC is powerless, and helpless, in the face of these forces.

History says the U.S. dollar is going higher.