Forex for a trader
China forex reserves

China forex reservesChina forex reserves rise slightly as U. S. dollar weakness continues. BEIJING (Reuters) - China’s foreign exchange reserves rose slightly in March as broad U. S. dollar weakness continued and escalating trade tensions between the world’s two largest economies bolstered expectations of a firmer Chinese currency. Reserves rose $9 billion in March to $3.143 trillion, compared with a drop of $27 billion in February, central bank data showed on Sunday. Economists polled by Reuters had expected reserves to increase by around $6 billion in March to $3.14 trillion. Capital flight was seen as a major risk for China at the start of 2017, but a combination of tighter capital controls and a faltering dollar helped the yuan stage a strong turnaround, bolstering confidence in the economy. Last year China’s reserves rose for the first time since 2014 and its cross-border capital flows went from net outflows to basically stable. China’s foreign exchange regulator said in late March it expected cross-border capital flows to remain basically stable this year. The Chinese currency rose 0.8 percent versus the U. S. dollar in March and posted its biggest quarterly gain in a decade during the January-March period. Caitong International attributed the recent yuan strength partly to the newly launched crude oil futures in Shanghai, which the brokerage said triggered demand for the yuan from foreign investors. In 2017, the yuan rose around 6.8 percent against the greenback, reversing three straight years of depreciation. The Trump administration slapped hefty tariffs on steel and aluminum imports last week and then announced 25 percent tariffs on some 1,300 Chinese industrial technology, transport and medical products this week in an attempt to force changes in Beijing’s intellectual property practices. In response, China has slapped extra tariffs of up to 25 percent on 128 U. S. products including frozen pork, as well as on wine and certain fruits and nuts, and said it would soon announce more measures of equal intensity and scale against U. S. goods.

The looming specter of a trade war between the two countries fueled expectations that Beijing may be happy to see a stronger yuan at this stage to defuse tensions with Washington. The value of China’s gold reserves rose to $78.419 billion at the end of March, from $78.064 billion at the end of February. Mapped: The Countries With the Most Foreign Currency Reserves. In the high stakes game of international trade, holding onto a stockpile of foreign cash gives you options. Forex reserves can help buoy the local currency or even provide much-needed insurance in the case of a national economic emergency. And when reserves are plentiful, a country can even use them to wield influence on international affairs – after all, most financial assets are simultaneously someone else’s liability. Forex Reserves by Country. Today’s infographic comes to us from HowMuch. net, and it resizes countries on a world map based on their foreign currency reserves, according to the most recent IMF data. Here is a list of the top 10 countries – China tops the list with a solid $3.2 trillion in reserves held: The first thing you may gather from this list is that major economies like the U. S. and Europe are noticeably absent, but that is because the U. S. dollar and the euro are the most common reserve currencies used in international transactions. As a result, countries such as the United States do not need to hold as many reserves.

To put this all into context, here is what central banks reported in 2017 Q3 for their foreign currency holdings: Interestingly, the Japanese yen has decent acceptance as a reserve currency, but the country still holds the second highest amount of foreign currency reserves ($1.2 trillion) anyways. This is partially because Japan is an export powerhouse, sending $605 billion of exports abroad every year. Why Hold Foreign Currency Reserves? And now, a practical question: why do these countries hold foreign currency reserves in the first place? Here are seven reasons, as originally noted by The Balance: Forex reserves allow a country to maintain the value of their domestic currency at a fixed rate Countries with floating exchange rates can buy up foreign currencies or financial instruments to reduce the value of their domestic currency Forex reserves can help maintain liquidity during an economic crisis Reserves can provide confidence to foreign investors, showing that the central bank has the ability to take action to protect their investments Foreign currency reserves give a country extra insurance in meeting external payment obligations Forex reserves can be used to fund certain sectors, like building infrastructure They also provide a means of diversification, which allows central banks to reduce the risk of their overall portfolios. China December forex reserves rise to $3.14 trillion, highest since September 2016. BEIJING (Reuters) - China’s foreign exchange reserves rose to their highest in more than a year in December, blowing past economists’ estimates, as tight regulations and a strong yuan continued to discourage capital outflows, central bank data showed on Sunday. Notching up their 11th straight month of gains, reserves rose $20.2 billion in December to $3.14 trillion, the highest since September 2016 and the biggest monthly increase since July. That compares with an increase of $10 billion in November.

Economists polled by Reuters had expected reserves to rise by $6 billion to $3.125 trillion. Capital flight had been seen as a major risk for China at the start of 2017, but a combination of tighter capital controls and a faltering dollar helped the yuan stage a strong turnaround, bolstering confidence in the economy. The yuan rose around 6.8 percent against the greenback in 2017, recovering from a 6.5 percent loss in 2016 and reversing three straight years of depreciation. For the full year, China’s FX reserves rose $129.5 billion from $3.011 trillion at the end of 2016. That’s the first annual rise since 2014. China’s foreign exchange regulator said in a statement on its website that it would keep the nation’s forex reserves and international balance of payments “balanced and stable” in 2018. The country’s reserves dropped by nearly $1 trillion from a peak of $3.99 trillion in June 2014 to $2.998 trillion in January 2017 as it sought to shore up the yuan and reduce potentially destabilizing capital outflows. But reserves have since climbed by $142 billion. Despite the improved capital flow picture, China’s State Administration of Foreign Exchange has continued a clampdown on the movements of funds abroad. The regulator announced last month it would cap overseas withdrawals by people using domestic Chinese bank cards starting this year. Some major global acquisitions by Chinese firms have also been put on ice by regulators, who fear they are really intended to disguise movements of capital offshore, though Beijing has maintained genuine investments will still be approved. China’s central bank reported net foreign exchange buying for the third consecutive month in November, marking a policy victory for the authorities after a long battle to stabilize the yuan, although analysts say capital flows are likely to remain volatile as the economy slows. Economists polled by Reuters expect the yuan to depreciate slightly this year if the dollar firms. The value of gold reserves rose to $76.47 billion at the end of December, from $75.833 billion at the end of November, data on the People’s Bank of China’s website showed.

Reporting by Josephine Mason, Meng Meng and Cheng Fang; Editing by Himani Sarkar. US Search Mobile Web. Welcome to the Yahoo Search forum! We’d love to hear your ideas on how to improve Yahoo Search . The Yahoo product feedback forum now requires a valid Yahoo ID and password to participate. You are now required to sign-in using your Yahoo email account in order to provide us with feedback and to submit votes and comments to existing ideas. If you do not have a Yahoo ID or the password to your Yahoo ID, please sign-up for a new account. If you have a valid Yahoo ID and password, follow these steps if you would like to remove your posts, comments, votes, andor profile from the Yahoo product feedback forum. China’s forex reserves are up – and so are fears of a US trade war hit. China’s trade surplus has been the biggest contributor to its foreign exchange stockpile but that could change amid tensions with the United States. Frank Tang UPDATED : Sunday, 8 Apr 2018, 10:53PM. China added US$8 billion to its foreign exchange reserves last month to take the total to US$3.14 trillion at the end of March, but concerns are growing that a looming trade war could shrink the biggest source of those funds – the trade surplus. The growth in the reserves, the world’s biggest, partially reversed February’s US$27 billion decline and continued the broader trend of steady replenishment of the stockpile, the size of which has become a barometer of confidence in the Chinese economy. The reserves have grown in tandem with the country’s exports, hitting an all-time high of US$4 trillion in June 2014 from a mere US$212 billion in 2001, when China joined the World Trade Organisation and its exports took off. Beijing briefly worried in mid-2014 that the stockpile was too big but those fears vanished over the next 18 months as a Chinese stock market rout and a yuan devaluation misstep triggered capital outflows, bleeding off a quarter of the reserves.

The government then started to curb outflows to staunch the losses. Over the years, the trade surplus has remained the single largest contributor to the reserves. According to China’s customs administration, the country had a US$422.5 billion trade surplus last year, with US$276 billion, or about two-thirds, from the United States. China Minsheng Banking chief economist Wen Bin said the trade surplus gave solid support for the stability of the forex reserves last month. “However, trade uncertainties remain given the China-US trade frictions,” Wen said. Those uncertainties prompted the State Administration of Foreign Exchange to single out international political factors for the first time in releasing the figures. “Financial markets may face uncertainties since the international political and economic environment remains complex and fast changing,” it said in a statement on Sunday. Nevertheless, it expected the reserves to be stable overall in terms of international balance of payments and cross-border capital flows. Beijing and Washington have exchanged fire over the trade imbalance, which totalled US$375 billion last year, according to US data. US President Donald Trump demanded in February that the gap be cut immediately by US$100 billion, a move followed by his administration’s decision to impose 25 per cent tariffs on US$50 billion worth of Chinese merchandise and threats to target another US$100 billion in goods after Beijing hit back with reciprocal tariffs. Yan Se, from Peking University’s Guanghua School of Management, said there was still room to manoeuvre.

“Despite the heightened tone, both have actually left enough buffer areas and opportunities for negotiation. For instance, their lists of tariffs have not detailed a date for implementation,” Yan said. He also said Beijing was unlikely to heed domestic calls to retaliate by selling US Treasury bonds because it would have little impact. “Although China is the largest foreign holder, it has a small proportion of the total … More important, both countries have no intention to escalate their friction,” Yan said. Beijing’s holdings of US Treasury bills totalled US$1.17 trillion at the end of January, a rise of US$117 billion from a year earlier, according to US Treasury data. China’s real holdings of US Treasuries could be much bigger, if Beijing’s proxy accounts are factored in. Chinese Premier Li Keqiang said last month that China was a “responsible investor” and its forex strategy was based on market rules and portfolio diversification. Vice finance minister Zhu Guangyao went a step further last week to say that investment safety, liquidity and returns were the top three considerations for such investment. On the sidelines of the Boao Forum for Asia in Hainan province on Sunday, Zhang Yuyan, head of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences, said China had no intention of allowing the trade dispute to spill over into finance, saying the possibility of China selling its US Treasury holdings in a trade war was “very small”. “There should be a firewall between trade problems and financial ones,” Zhang said. He also said a fully fledged trade war with the US was not a sure thing. “Maybe one or two days before the actual implementation of the tariffs on US$100 billion worth of Chinese goods, the US side will gain its reason and sense,” Zhang said. “There are many cases of compromises being reached at the last minute.” Additional reporting by Liu Zhen in Boao. China's forex reserves rebound in June.

BEIJING, July 9 (Xinhua) -- China's foreign exchange reserves stood at 3.1121 trillion U. S. dollars at the end of June, up 0.05 percent from May, official data showed Monday. The amount, beating market forecasts of 3.1028 trillion dollars, came after two months of decline, according to the People's Bank of China (PBOC). The State Administration of Foreign Exchange (SAFE) attributed the rise in June to a stable forex market at home, dollar strength and fluctuating asset prices. The economy has been stable this year with good momentum for growth. Sound economic fundamentals have stabilized market expectations and cross-border capital flows, the SAFE said on its website. The forex regulator said as the country pursues supply-side structural reform, innovation-driven development, reform and opening-up, its potential for stable economic growth can ensure stability in the forex market. SAFE warned of external uncertainties, especially those originating in the United States, but expected forex reserves to stay generally stable. According to the PBOC, gold reserves were unchanged in June at 59.24 million ounces, equivalent to 74 billion dollars. Subscribe to the FT to read: Financial Times Fast Asia Open: China forex reserves, Australia trade balance. Become an FT Subscriber. Gain access to global coverage from local journalists on the ground in 50+ countries working around the clock to break news, analyze, spot risks and opportunities. Join over 300,000 Finance professionals who already subscribe to the FT. US Search Mobile Web. Welcome to the Yahoo Search forum! We’d love to hear your ideas on how to improve Yahoo Search . The Yahoo product feedback forum now requires a valid Yahoo ID and password to participate. You are now required to sign-in using your Yahoo email account in order to provide us with feedback and to submit votes and comments to existing ideas.

If you do not have a Yahoo ID or the password to your Yahoo ID, please sign-up for a new account. If you have a valid Yahoo ID and password, follow these steps if you would like to remove your posts, comments, votes, andor profile from the Yahoo product feedback forum. China’s foreign exchange reserves in unexpected June rise despite trade threats and yuan’s worst month on record. Reserves up $1.51 billion, after a drop of $14.23 billion in May, even against backdrop of escalating tensions with the US. Reuters UPDATED : Monday, 9 Jul 2018, 10:48PM. China’s foreign exchange reserves unexpectedly rose in June, driven by changes in the value of its holdings and even as concerns of a full-blown trade war between Beijing and Washington rattled markets. Reserves rose $1.51 billion in June to $3.112 trillion, compared with a drop of $14.23 billion in May, central bank data showed on Monday. Economists polled by Reuters had expected reserves to drop by $10.6 billion to $3.10 trillion. The small increase in reserves was due to asset price changes, the State Administration of Foreign Exchange (SAFE) said in a statement. The Chinese currency and equity markets had been on edge ahead of last Friday, when US tariffs on $34 billion worth of Chinese goods kicked in. Beijing has retaliated with tariffs on US products of the same value. The heightened Sino-US trade tensions have sparked concerns of capital outflows from China and threatened to pile more pressure on the Chinese currency. In June, the yuan suffered its worst month on record, falling 3.25 per cent against the US dollar. June also represented the worst month for Chinese stocks in more than two years.

Capital flight was seen as a major risk for China at the start of 2017, but a combination of tighter capital controls and a faltering dollar helped the yuan stage a strong turnaround, bolstering confidence in the economy. Last year, the yuan reversed three straight years of depreciation against the US dollar and China’s cross-border capital flows went from net outflows to basically stable. The yuan fell through a key psychological level of 6.7 on the US dollar last Tuesday. The Chinese authorities made remarks the same day to assure markets it would keep the currency stable. China’s forex regulator said in the commentary on Friday it expects the country’s foreign exchange reserves to remain stable, despite rising trade protectionism and Federal Reserve interest rate increases. Despite the market tumult in the past week, China appears broadly comfortable with a weakening yuan and would intervene only to prevent any destabilising declines or to restore market confidence, policy insiders told Reuters. Authorities are also confident they will not have to make heavy use of the official foreign exchange reserves to defend the yuan as they did during 2015 when stocks and the currency went into a tailspin. The value of China’s gold reserves fell to $74.071 billion at the end of June, from $77.323 billion at the end of May. LAWRIE WILLIAMS: China forex reserves rise in July despite gold price fall. by Lawrence Williams · Published August 8, 2018 · Updated August 7, 2018. LAWRIE WILLIAMS: China forex reserves rise in July despite gold price fall from Sharps Pixley. The latest data from the People’s Bank of China (the nation’s central bank) show that the country’s foreign exchange (forex) reserves rose in July by US$5.8 billion or 0.19 percent, from a month earlier to US$3.1179 trillion, despite the gold price fall. The value of the country’s gold reserves, whose size reportedly remained unchanged at 59.24 million ounces, fell by $1.75 billion over the month to $72.32 billion. At an unchanged gold price the nation’s forex reserves would thus have risen by $7.55 billion. Looking at the forex reserve figures some of the increase will have been a revaluation of the country’s holdings given the decline in the parity of the yuan against the dollar in a reaction to the Trump Administrations’s tariff impositions on Chinese imported goods.

Whether this was due to normal forex market activity, or a Chinese move to gradually devalue the yuan in the new trading situation, is open to speculation! As to the country’s gold reserves which have now remained unchanged, as officially reported, for 21 months in a row, as we have often stated beforehand we reckon that China is actually accumulating gold in non-reported accounts. (See: China’s gold reserves – fact or fiction?) These could be in other directly controlled holdings or in accounts held by government controlled third parties, like the state-owned commercial banks and could be seamlessly moved into the nation’s officially reported reserves when the time is considered opportune to do so. China does have a track record of doing this and only reporting reserve increases at multi-year intervals – apart from during a 15 month period ahead of the yuan being accepted as an integral part of the IMF’s Special Drawing Rights (SDR) when China reported monthly gold reserve increases. As soon as the yuan became a part of the SDR basket it ceased to report any gold reserve increases. We do not think this timing was accidental!



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