59209
China Forex  Reserves at  6-Year Low
China Forex  Reserves at  6-Year Low

China Forex Reserves at 6-Year Low

China Forex Reserves at 6-Year Low

China’s foreign currency reserves dropped below the $3 trillion level for the first time in nearly six years, data showed Tuesday, highlighting the challenges faced by Beijing in curbing capital outflows, EJInsight reported. According to figures released by the People’s Bank of China, the nation’s forex stockpile fell $12.31 billion last month to $2.998 trillion. The drop was larger than expected, complicating the central bank’s balancing act of trying to contain asset bubbles without triggering a liquidity crunch, the Wall Street Journal reports. China’s forex regulator played down significance of the reserves falling below the $3 trillion mark, insisting that the reserves remain ample and that they will continue providing support to the yuan. However, the Journal noted that the continued outflows are challenging the PBOC’s ability to juggle its conflicting goals of curbing bubbles and supporting growth. The central bank needs to tighten market liquidity to prevent excessive borrowing. But on the other hand, money leaving China means banks have less cash to lend, leading them to call for the central bank to pump in more liquidity.

 

 

Short URL : https://goo.gl/Tm089W
  1. https://goo.gl/EaepSU
  • https://goo.gl/Fev3ko
  • https://goo.gl/bWyeXG
  • https://goo.gl/YgR3HP
  • https://goo.gl/RBYhm3

You can also read ...

China Challenges US Solar Panel Duties
China says it is challenging a US tariff hike on solar panels...
In a retaliatory move, President Recep Tayyip Erdogan’s government on Wednesday announced higher tariffs on some US imports, namely on passenger cars (120%) and leaf tobacco (60%).
Turkey has raised tariffs on some US imports, including...
World trade volume growth peaked in January at almost 5.7% year-on-year but nearly halved to less than 3% by May.
Cyclical indicators point to slower and more uneven growth in...
File picture of Kim Jong-un (L) and Moon Jae-in at the truce village  of Panmunjom, South Korea.
South Korea President Moon Jae-in on Wednesday offered a bold...
Surging Inflation Mars Philippines Growth
The Philippine economy in 2018 is a story that can be summed...
Nigeria CPI Drops to 11.14 Percent
Nigeria’s National Bureau of Statistics says the consumer...
Moody’s Predicts Slower Fiscal Progress in S. Africa
South Africa’s fiscal consolidation will be slower than the...
Transport tickets and fuel have driven up costs for consumers.
Inflation in the UK climbed in the month of the July, as had...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus