“Averting A $3.2 Trillion Loss” — China Holds Emergency Meeting To Protect The Country From Russia-Like Sanctions

Tanmay Kadam

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China’s regulators held an emergency meeting on April 22 with its central bank, finance ministry, domestic banks operating within China, and international lenders such as HSBC.

The emergency meeting was prompted by the harsh US-led sanctions on Russia that have frozen $300 billion of $640 billion held by Russia’s central bank—the Bank of Russia (BOR)— in foreign reserves.

These unprecedented measures against a country’s central bank have raised central bank reserve holdings’ geopolitical and sovereign risk. They have also given rise to fears in Beijing about the possibility of similar sanctions being leveled against China in the event of its military invasion of Taiwan.