Well, 'am neither an subject expert in forex matters nor an economist but bumped into an article in MoneyWeek while I was getting to understand Carry Trade (?)
An excerpt from the article;
"China does not have to sell any of its existing dollar reserves to precipitate a decline in the dollar - all it has to do is stop accumulating dollars. The current US trade deficit with that country alone is running over $20 billion per month, and that is not an insignificant amount. If China stopped accumulating foreign reserves, those dollars would be sold into the foreign exchange markets and I expect that when that happens, the dollar will fall."
Read the entire article here.
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