There are rumours flying around that PBOC Governor Zhou Xiaochuan may have left the country because of extensive losses of up to USD$430 billion ostensibly created in the US Treasury market. I’m not sure how the PBOC could have lost such an amount in US Treasuries in a rising market?
Yet other rumours suggest that the losses may be derived from actual FX positions which the PBOC holds.
If Mr Zhou doesn’t turn up soon then there may be some fire to this smoke.
