Why is Bernanke only using words to help stabilize the dollar? Because he does not have the currency to do it. The Treasury has somehwere around $75 billion in foreign currency reserves with which it could intervene. Turkey, Poland and Libya each have more. China, alone added $75 billion in May.
Look at these headlines:
China's foreign reserves at $1.8 Trillion
THE ASSOCIATED PRESS
China's foreign reserves, already the world's largest, rose to US$1.8 trillion at the end of May but growth slowed, a government newspaper reported Friday.
The reserves grew by US$40.3 billion in May, well below the April increase of US$75 billion, the China Securities Journal said, citing data from the State Administration of Foreign Exchange._____________
(Brazil) CENTRAL BANK: Foreign reserves exceed US$200bn for 1st time
SÃO PAULO, 6/27/08 - Brazil's foreign reserves have exceeded US$200 billion for the first time and reached US$200.231 billion._____________Nigeria: Foreign Reserves Rise to $60.84bn
Posted to the web 23 June 2008
The Central Bank of Nigeria (CBN) on Thursday said that Nigeria's foreign currency reserve rose to $60.84 billion in mid June from $59.16 billion it recorded at the end of May._____________Mumbai,India, June 28: The country’s forex reserves jumped $1.79 billion to $312.48 billion for the week ended June 20 from $310.68 billion in the previous week. Foreign currency assets rose to $302.74 billion, up $1.78 billion, from $300.95 billion a week back. Gold reserves and special drawing rights during the week were static at $9.20 billion and $11 million, respectively. The country’s reserve position in the international monetary fund rose $5 billion to $524 million during the week._____________Russia piling up gold and currency reserves
RBC, 26.06.2008, Moscow
Russia's gold and currency reserves stood at $558.7bn as of June 20, up $7.2bn, or 1.3 percent, from the previous showing. Combined with a $70.5bn rise over the previous 18 weeks, reserves have climbed a total of $77.7bn, or 16 percent, in 95 working days. The rapid increase in reserves can be attributed to the euro's significant advance against the dollar on international exchanges, as well as a stepping-up in the Central Bank's purchases of foreign currency on the domestic market. As a result, Russia has somewhat narrowed the gap separating it from China and Japan, the global leaders in terms of reserves, which exceed $1.75 trillion in China and amount to roughly $1.015 trillion in Japan.