China’s Foreign Reserves Surge

China’s foreign exchange reserves saw their biggest quarterly increase since the second quarter of 2011, with experts noting that affairs in the U.S. are complicating China’s constant need to wrestle control of its currency.

The country’s stash of foreign exchange reserves rose to $3.66 trillion in the three months to the end of September, from $3.5 trillion in the three-month period ending in June. This $160 billion jump signals central bank intervention aimed at slowing gains in the yuan, which is currently trading at record highs against the dollar.

“This was the fifth largest quarterly increase on record,” Simon Derrick, the chief currency strategist at Bank of New York Mellon told CNBC. “In other words, this was a return to the sort of conditions that prevailed during the height of the currency war in late 2010/early 2011.”

CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.