the agreement was a one-way swap where the Philippines would exchange the peso equivalent that China would convert to renminbi (its currency) and then into dollars.
"So ultimately, they would give us the proceeds in dollars," Buenaventura explained. "We can actually draw from the facility in renminbi but it is more likely that we would draw the dollar equivalent because all our trades are in dollars."
Ok im not even goingto ask the obvious question here because the answer would probably give me a migraine headache that would last for three days :-)
The Chinese are sitting on a bunch of dollars and have to find some way of loaning it out.
According to a Walter Williams
article those dollars are going to come back into the US. I think the ChiComs are looking for ways to delay that return.