News Column

Mar. Central Bank-caliber Funds for Forex to CNY174.2bn

May 8, 2014

BEIJING, May 8, SinoCast -- China's newly-added central bank-caliber funds outstanding for foreign exchange hit CNY 174.2 billion in March, compared with CNY 189.2 billion of full-caliber funds outstanding for foreign exchange.

This has explained why renminbi has continued to depreciate since this year to certain extent, said analysts, as the data showed the central bank made full efforts buy into the US dollar and sell renminbi from commercial banks to result in that renminbi has continued to weaken and the final purpose is adding speculative arbitrage costs and breaking the unilateral renminbi appreciation expectation.

For the future trend of renminbi, Credit Suisse said in a report that the central bank has achieved a great success in giving a lecture to speculators, but China's continuing large-amount trade and current account surpluses decided renminbi will not continue to depreciate all the time.

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Source: Sinocast Banking & Credit Beat (China)

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