54954
China Forex Reserves Fall for Fifth Straight Month
China Forex Reserves Fall for Fifth Straight Month

China Forex Reserves Fall for Fifth Straight Month

China Forex Reserves Fall for Fifth Straight Month

In November, Beijing depleted its foreign exchange reserves more than expected, as authorities struggled to stem massive outflows of capital in view of a depreciating yuan against a strongly rising US dollar.
According to data released by the People’s Bank of China on Wednesday, the central bank’s forex reserves fell by $69.06 billion last month, to $3.052 trillion—the fifth straight month of decline and a level not seen since March 2011. China’s gold reserves also fell to $69.7 billion at end-November from $75.348 billion at end-October, DW reported.
November’s drop was the largest since January, when a sharp fall in the yuan and worries about China’s slowing economy raised fears that Beijing would devalue its currency, shocking global financial markets.
The central bank is widely believed to have sold US dollars to support the yuan currency as it sunk to more than 8-1/2 year lows. China’s foreign exchange regulator said the decline in reserves was partly due to the dollar’s 3% rally versus major currencies in November.
The yuan fell 1.6% in November alone, its worst month since August 2015, and adding to a more than 5% slide so far this year. China’s currency has been falling alongside other emerging market currencies in the face of the rising dollar. The US currency is riding high on hopes that president-elect Donald Trump’s economic policy will boost growth in the world’s biggest economy.
In addition, the yuan is under pressure following Trump’s remarks to label China a currency manipulator on his first day in office on Jan. 20. Moreover, he vowed to impose huge tariffs on imports of Chinese goods to reduce the countries massive trade surplus with the US.

 

Short URL : https://goo.gl/5IOwcS
  1. https://goo.gl/n08MY4
  • https://goo.gl/rY6DnU
  • https://goo.gl/U5HH62
  • https://goo.gl/ulUEkD
  • https://goo.gl/47ZEDF

You can also read ...

Members discuss policies, regulation and flexibility to  help improve infrastructure.
Experts from APEC member economies spoke about the need to...
China Eyes SE Asia Investments
Companies from the world’s second-biggest economy are...
South Korea Business Groups’ Investment Rises 28%
South Korea’s top 30 conglomerates increased their investment...
Romania leads the pack in economic growth. The picture shows tires being inspected during production  at the Continental plant in Timisoara.
Economies in most of the European Union’s eastern wing...
Project awards in Bahrain plunged 84%.
Contracts awarded to build economic projects in the Persian...
Australia Economy Grows  With Strong Jobs Report
The strength of the Australian economy has been impressive of...
Infosys is Asia’s No.2 software services developer.
Infosys Ltd. approved a 130 billion rupees ($2 billion) share...
Qatar Tells Banks to Seek Overseas Funding
Qatar is telling its banks to tap international investors to...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus