January 7, 2016

Chart of the Day: China’s Foreign Exchange Reserves in US Dollars

   January 7, 2016

Chart of the Day: China’s Foreign Exchange Reserves in US Dollars

The data suggests that the central bank is having to spend vast quantities of dollars to defend an increasingly under pressure yuan amid decelerating growth and the onset of higher U.S. interest rates. A weaker currency in theory would boost exports, but concerns over deep structural problems in China’s is leading to massive capital outflows.

 

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