Free Trial

MNI BRIEF: China FX Reserves 1.38% April Dip In Dollar Terms

MNI (Beijing)

China’s foreign exchange reserves totalled USD3.208 trillion through end-April, down 1.38% from March, according to data released by the State Administration of Foreign Exchange (SAFE) on Tuesday.

Reserves had fallen due to exchange rate conversion effects and changes in asset prices, SAFE said in a statement. However looking forwards, the country’s FX reserves would maintain basic stability given China’s resilient economy.

China’s yuan will likely test 7.30 against the greenback in the short term should the U.S. dollar index move toward 107, but continue to depreciate more slowly than other currencies as the People’s Bank of China sets relatively strong fixings and tight offshore liquidity shores up the CNH rate outside the mainland, policy advisors and traders recently told MNI. (SEE: MNI: China Yuan Seen Breaching 7.3, Strengthening Against Basket)
MNI Beijing Bureau | lewis.porylo@marketnews.com
MNI Beijing Bureau | lewis.porylo@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.