Posts tagged 'Foreign Exchange Reserves'

The RBA – leaning against the wind

| Oct 29 2012 01:06 | Comment |

Is the Reserve Bank of Australia intervening in the market to hold down the remarkably resilient Aussie dollar? That’s the question commentators and economists are asking themselves following the publication of data at the end of last week that showed a significant increase in the pace of foreign exchange accumulation (admittedly from a low very low base) in August and September. Read more

China’s foreign reserves not so hot

Kate is FT AV’s Asia Correspondent. She joined FT Alphaville in mid-2011 after carrying out various roles in the FT’s London office since 2005: interactive editor, companies reporter, and founding editor of the FT’s Energy Source blog.

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| Jan 16 2012 10:36 | Comment |

China’s first quarterly decline in its forex reserves since 1998 has been described as a result of “hot money” leaving China. But there are a few other reasons — probably bigger ones.

Firstly, though, the scale of this reversal versus the usual trend was smaller than it appeared, according to Jens Nordvig at Nomura. And some of it was a response to exchange rates: Read more

China’s forex reserves fall

Kate is FT AV’s Asia Correspondent. She joined FT Alphaville in mid-2011 after carrying out various roles in the FT’s London office since 2005: interactive editor, companies reporter, and founding editor of the FT’s Energy Source blog.

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| Jan 13 2012 04:51 | Comment |

China’s foreign-exchange reserves dropped for the first time in more than a decade, Bloomberg reports, as foreign investment moderated, the trade surplus narrowed and Europe’s crisis spurred investors to sell emerging-market assets. The holdings, the world’s biggest, fell to $3.18tn at the end of December from $3.2tn at the end of September, data from the People’s Bank of China showed. The quarterly drop was the first since the second quarter of 1998, according to data compiled by Bloomberg. Meanwhile the WSJ says China may eventually invest more of its $3.2tn foreign-exchange reserves in stocks, enterprises and other assets as it looks for ways to boost returns on its reserves, according to an interview with Jiang Jianqing, chairman of China’s largest state-owned bank. Read more

China’s foreign reserves climb by $153bn

Cardiff writes mostly about US macroeconomic issues, with daily excursions into other topics about which he claim no expertise. Before Alphaville, Cardiff spent a little more than two years as a reporter at Dow Jones Financial News covering investment banking, asset management, and private equity. Along the way he has written freelance pieces on a variety of other topics from behavioural psychology to Muay Thai, the latter also being a personal interest that involves frequently getting kicked in the shins (and torso, and head).

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| Jul 12 2011 22:23 | Comment |

China’s foreign exchange reserves, already the world’s biggest, soared again in the second quarter, adding to inflationary pressure and highlighting the risks in Beijing’s policy of holding down the value of its currency, writes the FT. Reserves are a key indicator of central bank intervention in the currency market because they reflect how much foreign exchange it has purchased in order to stabilise the renminbi. After jumping $197bn in the first quarter, reserves were up another $153bn in the second quarter. That influx of cash compounds China’s inflation troubles. Consumer prices were up 6.4 per cent in the year to June, the highest in three years. Although many analysts expect inflation to slow over the remainder of the year, the accumulation of reserves lays the groundwork for a continuation of fast money growth and so will limit the scope for any easing of price pressures. “The current intervention of the People’s Bank of China has been piling up more and more foreign exchange reserves. This is not sustainable,” said Li-Gang Liu, head of China economics at ANZ Bank. Read more

China’s foreign reserves rise by $194bn

Izabella Kaminska joined FT Alphaville in October 2008. Before that she worked as a producer at CNBC, a natural gas reporter at Platts and an associate editor of BP's internal magazine.

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| Oct 13 2010 22:30 | Comment |

China’s foreign exchange reserves increased by their largest amount ever in the third quarter thanks to capital inflows and a persistently large trade surplus that adds weight to complaints Beijing is intentionally undervaluing its currency, reports the FT. The country’s reserves, already by far the largest in the world, increased by $194bn in the past three months to $2,650bn, eclipsing the previous record rise of $178bn in the second quarter of 2009. The recent strengthening of the euro and yen against the US dollar explains some of the increase because China’s reserves are expressed in dollars but invested in a range of currencies and assets. But the record build up also provides evidence of an undervalued renminbi and will bolster the case of trade partners calling for faster appreciation in the currency. Read more