Growth In Chinese Forex Reserves Slows

From Financial Times:

China’s foreign exchange reserves grew at their slowest pace in more than two years in June, prompting questions over whether the flow of speculative capital into China was slowing as a result of government efforts.

The People’s Bank of China said its grew to $1,810bn (€1,140bn, £910bn) at the end of June but increased by a relatively modest $11.9bn over the month after increasing by a record $75.5bn in April and $40.3bn in May.

China’s foreign exchange reserves, which are the biggest in the world, have trebled in size since 2004. But the $11.9bn increase in June was the smallest monthly jump since February 2006.

Read also China’s Currency Reserves Rise 36% to $1.81 Trillion by Nipa Piboontanasawat and Li Yanping.

July 14, 2008 9:54 PM
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Categories: Economy