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16 Apr 2014
Chinese FX reserves keep growing - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, observes the Chinese foreign exchange reserves remain on the raise.
Key Quotes
"It was also revealed yesterday that China’s foreign exchange reserves increased by USD128.7 billion (3.4%) in Q1 to USD3.95 trillion. It was the third consecutive quarter of robust foreign exchange reserve growth, with reserves having increased by just over USD500 billion over the past year."
"The US Treasury in their semi-annual currency report noted that “recent developments in the RMB exchange rate would raise particularly serious concerns if they presage renewed resistance to currency appreciation”. The yuan’s depreciation so far during 2014 was described as “marked” while the report also stated that “the Chinese authorities have been unwilling to allow an appreciation large enough to bring the currency to market equilibrium”.
Key Quotes
"It was also revealed yesterday that China’s foreign exchange reserves increased by USD128.7 billion (3.4%) in Q1 to USD3.95 trillion. It was the third consecutive quarter of robust foreign exchange reserve growth, with reserves having increased by just over USD500 billion over the past year."
"The US Treasury in their semi-annual currency report noted that “recent developments in the RMB exchange rate would raise particularly serious concerns if they presage renewed resistance to currency appreciation”. The yuan’s depreciation so far during 2014 was described as “marked” while the report also stated that “the Chinese authorities have been unwilling to allow an appreciation large enough to bring the currency to market equilibrium”.