the last one-month decline in foreign exchange dates back to December 2007.

21 People’s Bank of China released the latest data show that in our foreign exchange balances continue to hit new high after some recent callback, appeared in October a net decrease of 200 billion a rare phenomenon.

11 21, central bank data showed foreign exchange to reduce the 24.892 billion yuan in October, for the first time in nearly four years. Although only 0.1% qoq but foreign exchange from several months of positive growth to negative growth, is still causing widespread concern. In August, a substantial increase in foreign exchange was 376.94 billion yuan, but the amount added in September fell to 247.263 billion yuan. China’s foreign exchange

This is the first decline in nearly four years, the last one-month decline in foreign exchange dates back to December 2007.

foreign exchange acquisition of foreign assets the central bank put the corresponding national currency. Analysts pointed out that changes in foreign exchange liquidity to some extent reflect changes in the current international financial situation in the context of profound changes in the international phenomenon of cross-border capital flows have slowed down.

interview that the European debt crisis, the international financial situation has undergone profound changes, cross-border capital flows become more complex and uncertain, a number of factors working together, lead to reduction in foreign exchange.

Bank macro-economic analyst Tang Jianwei that downturn in the stock market and real estate continue to raise the context of international cross-border capital investment in China has decreased enthusiasm, do not rule out some hot money back.

There are also bank foreign exchange dealers said the market for some time past there have been expectations of devaluation, the banking exchange behavior of reduced, resulting in reduction of foreign exchange data.

for reducing the impact of foreign exchange, economists believe that the decline in foreign exchange will reduce the supply of market liquidity, and ease the pressure on the central bank’s currency hedging.


Analysts believe that the decline in foreign exchange is to become the future trend remains to be seen, but large-scale outflow of hot money are not likely, the market will not suddenly tight liquidity situation.

According to the Xinhua News Agency


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