China FX reserves reach US$1.8t
Saturday, June 28, 2008
CHINA'S foreign exchange reserves, by far the largest in the world, hit US$1.80 trillion at the end of May, state media reported yesterday.
The figure represents an increase of US$40.3 billion for the month, down from US$74.5 billion recorded in the previous month, the China Securities Journal reported.
It said the main reason for the drop was due to a cut in the amount of speculative capital flowing into the country.
"There was a significant change in May regarding capital inflow the inflow of 'hot money' dipped sharply," it said, citing Ding Zhijie, economist with Beijing's University of International Business and Economics.
The foreign exchange regulator's efforts to strengthen supervision of cross-border capital flows have started to bear fruit but a turnaround in the trend of international capital flowing into China is unlikely, Ding said.
State media reported last week that China's foreign exchange regulator had ordered banks to submit monthly data on non-resident domestic currency accounts in order to curb incoming speculative capital.
Speculative money is entering China as investors hope for gains from factors such as the continued strengthening of the yuan.
AFP
The figure represents an increase of US$40.3 billion for the month, down from US$74.5 billion recorded in the previous month, the China Securities Journal reported.
It said the main reason for the drop was due to a cut in the amount of speculative capital flowing into the country.
"There was a significant change in May regarding capital inflow the inflow of 'hot money' dipped sharply," it said, citing Ding Zhijie, economist with Beijing's University of International Business and Economics.
The foreign exchange regulator's efforts to strengthen supervision of cross-border capital flows have started to bear fruit but a turnaround in the trend of international capital flowing into China is unlikely, Ding said.
State media reported last week that China's foreign exchange regulator had ordered banks to submit monthly data on non-resident domestic currency accounts in order to curb incoming speculative capital.
Speculative money is entering China as investors hope for gains from factors such as the continued strengthening of the yuan.
AFP
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