According to Bloomberg ( Behind Chinese Yuan's Tiny Drop, Indications of True Crisis Lurk, Ye Xie, Bonnie Cao) China has struggled to keep the yuan stable:
"In propping up the exchange rate, the People’s Bank of China also burnt through more than half a trillion of dollars in foreign reserves in the past 12 months, cutting them to $3.3 trillion. The draw-down was almost equivalent to the entire stockpile of Switzerland, the world’s fourth largest holder. Regulators also went to great lengths to tighten capital controls, cracking down on illegal money transfers and restricting lenders from conducting some cross-border transactions."
This blog holds the view that emerging currencies are likely to see volatility of a serious kind....Coming events cast their shadow before...
This blog recommends no investment....views expressed here are without any risk or responsibility.
"In propping up the exchange rate, the People’s Bank of China also burnt through more than half a trillion of dollars in foreign reserves in the past 12 months, cutting them to $3.3 trillion. The draw-down was almost equivalent to the entire stockpile of Switzerland, the world’s fourth largest holder. Regulators also went to great lengths to tighten capital controls, cracking down on illegal money transfers and restricting lenders from conducting some cross-border transactions."
This blog holds the view that emerging currencies are likely to see volatility of a serious kind....Coming events cast their shadow before...
This blog recommends no investment....views expressed here are without any risk or responsibility.
No comments:
Post a Comment