Related News
China's forex reserves drop smaller than expected
Online Edition
CHINA'S foreign exchange reserves dropped by US$99.5 billion from December to US$3.23 trillion at the end of January, the central bank said Sunday.
The decrease was milder than a month-on-month decline of US$108 billion registered in December, which was the sharpest monthly fall on record, data from the People's Bank of China (PBOC) showed.
The drop in January was below market expectations of a US$120 billion fall, suggesting that the worst fears of cascading capital flight have not come to pass, said Tom Orlik, chief Asia economist at Bloomberg.
China's forex reserves shrank by US$512.7 billion in 2015 as the country's currency was under increasing selling pressure after a revamp of the forex mechanism in August to make the currency's rate more market-based.
Yuan softening was also partly due to expectations of higher US interest rates and concerns over a slower Chinese economy, which led to capital flows outbound for higher returns.
However, the latest reserve data indicated the PBOC will be able to resist pressure for a disorderly depreciation, Orlik noted.
"The stock of reserves remains ample, enough to cover [capital] outflows at the current rate for more than two and a half years," Orlik said.
Despite the contraction, China's forex reserves remain the world's largest.
The country still has abundant forex reserves and a current account surplus, making it capable of withstanding the impact of cross-border capital flows, the State Administration of Foreign Exchange said Thursday.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
