Forex Broker:Chinese Forex Reserve First Shows Negative Growth in 15 Months

[amandalanlulei]

Forex Broker—- Bank of China released data yesterday as follows:
Until the end of June, China’s national forex reserve amounted to 2.4543 trillion US dollars, 15.5% up. Chinese forex reserve increased 7.2 billion US dollars in the second quarter this year, 170.7 billion US dollars less increased. This data is also much less than the forex reserve increase of 47.9 billion US dollars in the first quarter this year.
From the monthly data, in May, China’s forex reserve reduced by 51.006 billion US dollars, the first negative growth since February, 2009.
Some forex experts believe that this phenomenon is in relation with the development of European sovereignty crisis, in which many short-term assets flew out of fresh market including China into US national bond market.
Forex Administration Bureau said earlier that the RMB appreciation expectation had weakened, for the euro-zone crisis had increased market demand for USD assets. China’s forex net inflow had eased pressure.
Wang Qing, chief economist of Morgan Stanly in Greater China, holds that the slump of the euro in May and June this year reduced the value of China’s euro forex reserve when converted to the US dollar. He estimates that China’s trading surplus will remain high, which is bound to pose pressure to RMB appreciation.—-Forex Broker: IKONFX

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By Amanda.