Update on Chinas Foreign Reserves and FX Policy | September 2015
This update reviews the deep dive that the People’s Bank of China’s (POBC) foreign reserve numbers took in August (the largest monthly fall in China’s reserves) and the potential choices the POBC has in front of it.
China’s monthly foreign reserve numbers were watched with bated breath by the markets, and these dropped by $95 billion in August to take the People’s Bank of China’s (PBOC) headline reserve level to $3.557 trillion. This is the largest monthly fall in China’s reserves, and we would like to highlight a few important points:
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Senior Sovereign Analyst, BNY Mellon Investment Management Singapore Pte Limited